Trust rides high on stock market surge

June 3rd 2021

Shetland Charitable Trust (SCT) earned Â£130 million more than expected during the last financial year, propelling its overall value to Â£458m.

Trust rides high on stock market surge

Shetland Charitable Trust (SCT) earned £130 million more than expected during the last financial year, propelling its overall value to £458m.

The dramatic growth during 2020/21 stemmed from what the trust described as “an extraordinary period” for world equity markets which saw fortunes tumbling in the early months of the Covid-19 pandemic before recovering and surging to near all-time highs.

SCT was banking on a return of £18.4m for the year. Its investments actually generated £148.2m – a return of 50 per cent driven by the success of its biggest fund manager Baillie Gifford.

At their virtual meeting on Thursday, trustees heard that growth had been strongest in the United States and Japan with particular success for technology firms and those in the digital sector.

SCT chair Dr Andrew Cooper said: “To add nearly £150m to the trust in one year is outstanding by any yardstick. We are always conscious that it’s the longer-term return that matters and fortunes can dip just as quickly. But it’s reassuring for the community’s future that we have strong reserves in place to cope with the social challenges of uncertain times ahead.”

It is just two years since the trust climbed back to financial sustainability, having steered its reserves above £300m in 2019 for the first time since 2000. In 2008/09 they had dropped to £150m due to overspending and a downturn in markets at the end of 2008.

In the 2021/22 financial year, the trust has increased its spending to £12m, including an extra £1m for its main grant scheme supporting 26 organisations, more than a dozen of them for the first time. It also introduced a new small grants scheme.

The main beneficiaries of SCT spending are islanders who use Shetland’s care homes, leisure centres, arts venues, museums and heritage services or who get help from many of the voluntary services provided by local charities.

Last year SCT was also able to pay out an extra £500,000 towards the MRI Scanner Appeal and to put in place a £1.3m safety net for local charitable organisations hit by a slump in trade during lockdowns.

SCT started out in 1976 with a pot of £81m from oil revenues and has since spent around £340m on community services. The focus continues to be on supporting people in need, especially the elderly, children and young people, as well as seeking to enhance Shetland’s environment.

Contact: John Robertson

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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.