In the interests of diversifying its investment portfolio, TECT sold 20 million of its shares in Trustpower in April 2015.
In the interests of diversifying its investment portfolio, TECT sold 20 million of its shares in Trustpower in April 2015.
Tauranga Energy Consumer Trust (TECT) has confirmed its strategic asset allocation for the investment of funds from the proceeds of its recent selldown of 20 per cent of its shareholding in Trustpower.
TECT Trustees engaged the services of Fidato Advisory Ltd to provide advice on the diversified investment programme. Aftera comprehensive due diligence process the trust has confirmed the asset allocation and selected fund managers.
In the interests of diversifying its investment portfolio, TECT sold 20 million of its shares in Trustpower in April 2015. This reduced TECT's holding from 33.2 per cent to 26.8 per cent of shares in the company. The shares were sold at a price of $7.74 per share, realising total gross proceeds of $154,800,000.
TECT chairman Bill Holland said the process to reinvest the funds had been comprehensive.
"TECT is a long-term investor and this was fundamental to our investment decisions."
The trust had agreed to an asset allocation weighted towards growth assets, and after calling for proposals had confirmed the fund managers who would oversee the various asset classes. Global Equities made up 65 per cent of the portfolio and would be managed by Vanguard. Devon Funds Management would manage Australasian equities which made up 10 per cent of the portfolio, and Mercer Investments would manage Australasian property, global infrastructure and natural resources (15 per cent of the portfolio). The Trust had allocated 10 per cent of the portfolio to private equity, cash and a local property investment.
Wayne Werder, TECT general manager said the trust had achieved its original objective of diversifying its investment portfolio. "The sale of the Trustpower shares has provided TECT with a wonderful opportunity; but also a serious responsibility to invest prudently, and we are committed to achieving the best return for our consumers within an acceptable risk profile."
