Trust funds show strong growth

September 15th 2017

The value of Shetland Charitable Trustâ€™s investments increased by more than Â£30 million in the financial year to March.

Trust funds show strong growth

The value of Shetland Charitable Trust’s investments increased by more than £30 million in the financial year to March.

In the annual report presented to trustees on Thursday, auditors KPMG highlighted strong market conditions and the implementation of a new investment strategy as key factors behind the growth from £200 million in 2015-16 to £231 million.

The Trust disbursed almost £9 million to local charities and organisations to support the arts, heritage, leisure and social care in Shetland.

“It has been a good year for our investments on the world’s financial markets, unlike the previous year when returns were poor,” said Trust Chairman Bobby Hunter.

“Which goes to show that we cannot look at any single year in isolation – the Trust is a long-term investor.

“We have continued this year on the road to long-term financial sustainability with a planned, stepped reduction in our spending.

“Since its foundation in 1976, from the proceeds of an initial pot of £81 million the Trust has spent over £300 million – that’s more than £20,000 a day – to enhance the lives of folk living here.”

The Trust’s new investment strategy, which is designed to increase returns, resulted in Baillie Gifford being handed the mandate to manage half of its equities in an active equity fund.

BlackRock, Schroders and Insight manage the remaining reserves in equity, property and diversified growth funds.

Ends

For further information, please contact Paul Riddell of Platform Shetland on 07739 750543, 01595 697296 or paul.riddell@platformshetland.co.uk

Notes to editors

Shetland Charitable Trust is one of the largest such trusts in Scotland. The value of its investments is currently around £260m, with £232m invested in the world’s markets and £27m in the local economy. The remainder is net current assets.

Funded originally by Shetland Islands Council’s “disturbance payments” from the oil industry between 1976 and 2000, the Trust now relies entirely on its investment income.

The trust formerly comprised all councillors plus two independents. This changed in 2012 and again in 2017 and it is now a completely separate organisation from the council, with a built-in majority of independent trustees.

Shetland Charitable Trust owns three companies: Shetland Leasing and Property Developments Ltd (SLAP); Shetland Heat Energy and Power Ltd (SHEAP); and SCT Renewables Ltd.

Registered Charity No. SC 027025

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.