Shetland Charitable Trust sees gradual recovery of investment funds

September 20th 2023

Community funds invested by Shetland Charitable Trust (SCT) to pay for improving life in the islands have climbed £19.4 million so far this financial year, reaching £396.4m.

Trustees heard of the more positive up-to-date picture when they met on Thursday to review the trust’s annual performance for 2022/23, which was a turbulent period on the world stock markets.

Inflation and “geo-political tensions” – notably the war in Ukraine – hit the trust so bad last year it wiped £58 million from the reserves, which SCT aims to grow to generate its annual income.

Chair Robert Leask said inflation continued to be a concern in this financial year, together with the “relatively flat performance” of global markets.

He said: “Trustees are aware that markets are still in a period of volatility but the trust is in the fortunate position of being a long-term investor. Historical trends have, to date, ensured that funds will recover in the future.”

The annual report and accounts for the year to 31^st March show that the slump in value to £377m left SCT in the unusual position of earning nothing from its year’s activities on the world markets.

However, it did bank around £½ million from its Shetland investments, including land rental at Sullom Voe and a profit from the district heating scheme.

Despite the market volatility, SCT still managed to exceed its growth target of 6.5 per cent, recording a 9.3 per cent return over a five-year period.

SCT was able to avoid cutting back its spending budget last year of £13.1m. Major grants worth nearly £8.6m were awarded to 28 larger organisations with the social care service and the three big service trusts (recreational, amenity and arts) accounting for £7m (83 per cent). Almost £687,000 was shared between three of the bigger charities – the Shetland Islands Citizens Advice Bureau, the social enterprise COPE Ltd and Voluntary Action Shetland.

On top of the grants for running costs, SCT paid out over £2.7m towards the repair of major public buildings and from a contingency fund set up to help the big trusts cope with the income lost during the Covid lockdown.

In his introduction to the annual report, Mr Leask paid tribute to the “truly effective team” of staff and trustees, including the seven new faces on the board whom he described as “high calibre”.

SCT has begun work on its next financial strategy which is due to be agreed next year and will shape spending plans for 2025-2030.

For more information

Contact: Shetland Charitable Trust - mail@shetlandcharitabletrust.co.uk - Tel: 01595 744 994

Media Contact: John Robertson - noostmedia@gmail.com - Tel: 07775 407 796

Testimonials

The funding COPE Ltd receives from the Shetland Charitable Trust supports us in many ways. It allows us to develop and maintain a strong foundation to our core business and assists us to provide on-going employment skill development opportunities to people with disabilities living within Shetland. COPE Ltd highly values the support provided to our organisation by The Shetland Charitable Trust.

“The substantial grant made to us by Shetland Charitable Trust every year allows us to provide first-class facilities and dedicated staff to underpin sporting success among people of all ages and abilities in the islands.”

Having this core funding from the Charitable Trust means that we can use that money where we need it at any given time. It's multi-year funding which really takes the pressure off. To have the funding to keep going is really important as it is improving the lives of disabled folk in Shetland.

The funding that we get from the Charitable Trust pays for part of staff support and matching with other funders. Without local funders we wouldn't have national funders, and without either of those funders, we wouldn't be able to do this, so funding from the Shetland Charitable Trust is incredibly important.

The funding Shetland Arts gets from Shetland Charitable Trust is about making sure the organisation can thrive, access other funds, and deliver on behalf of the community of Shetland. Our funding from the Shetland Charitable Trust really helps us with our conversations with national funders because it shows that we're working on behalf of what the local objectives and priorities are.

The Access to Leisure scheme was introduced to allow folk to be able to get access to classes and activities for a lower cost. I feel that the SRT play a critical role in every community across Shetland and that's all down to the funding of the Shetland Charitable Trust that we're able to maintain that.

Unpaid carers do an amazing job looking after people 24/7 in their own homes, keeping them living at home safely, and they really need help to do that. Thanks to the funding from Shetland Charitable Trust, we've been able to employ a deputy manager, recruit more care attendants, and provide overnights. We're also really grateful for the funding because it means that everybody can get the service for free.