BayTrust achieved a solid revenue result of $17m (6.3 per cent) for the year ended March 31, 2022, allowing Bay of Plenty communities to receive record grant commitments.

This result is 1.4 percentage points above its benchmark, with its non-listed investment funds in particular, performing well.

Once community grant commitments of $13m and overhead expenses are taken into account, the Trust achieved a $2m surplus for the year.

Trust chair Rita Nabney says part of the reason behind the solid results is the investment decisions the Trust made to commit to having a more illiquid, low carbon investment portfolio.

She says this is not only helping the planet but maximising its long-term investment as more capital transitions into this area.

'Aligning with our values, our team and investment advisors, Cambridge Associates, have a strong view that investing sustainably is where the best and brightest want to work, where the consumer demand is growing, where the regulatory environment will support, and where investment capital is flowing,” Nabney says.

Rita Nabney.

The Trust's investment base has grown from $89m when it was first established as a separate investment entity in 1997, to $257m today.

This has allowed the Trust to reserve for inflation and population growth as well as provide a buffer for challenging investment periods which we are currently heading into.

This is an increase of $168m over 26 years, whilst over the same period the Trust has granted $97m into Bay of Plenty communities.

BayTrust CEO Alastair Rhodes is excited about where the Trust is heading and says the priorities of Kaitiakitanga; Healthy, Secure and Affordable Housing; Community Wellbeing and Tū Māori Mai (supporting Māori aspirations), will continue.

Housing is a key issue that BayTrust is working hard to help address, Rhodes says.

'We are looking to allocate ~10 per cent of our investment portfolio over the coming years into this space. We are also looking to work with Māori/iwi, community housing providers, central and local government, and other key stakeholders to maximise the impact the Trust makes.”

Habitat for Humanity have received a $4.6m commitment towards a BOP-wide progressive home ownership scheme and the Trust has also invested $1m into the WBOP's first meaningful ‘build to rent' complex.

BayTrust accepts that climate change poses a serious and immediate risk to both its potential investment returns and its communities.

It is working towards being a climate positive organisation, achieving an annual reduction target of five per cent, participating in the Combined Community Trusts' leadership group and working with other organisations on a regional emissions offsetting solution.

'As a sustainable investor, we have achieved a 91 per cent reduction in carbon exposure in our listed Global and Emerging Market Equity portfolios since 2018 and are on track to achieve our target of 50 per cent reduction across our entire portfolio by 2025,” Rhodes says.

'We are supporting our BOP communities to understand and mitigate their climate change impacts and grasp opportunities by embedding climate change as a foundational principle across our funding framework and assisting our higher tier partners through the provision of specialist assistance. This gives access to grants and interest-free loans to transition work vehicles to more climate friendly options.”

BayTrust's region covers a large area from Katikati to Tūrangi, to Eastern and Western Bay of Plenty including Rotorua and Taupō districts.

Anyone is welcome to join BayTrust's 34th annual public meeting which will be held at 3pm at Eastbay REAP, 21 Pyne St, Whakatane on Friday, August 19.

You can hear more about BayTrust's performance, listen to their advisors, Cambridge Associates, and learn what is in store for the future.

Please RSVP to info@baytrust.org with the number attending by August 12.

A copy of the Trust's FY22 annual report can be found at: www.baytrust.org.nz/vdb/document/86