Eastern and Central trust hands out $5.7m

Despite almost "shutting up shop" the Eastern and Central Community Trust is tonight meeting in Masterton after announcing annual grants of $5.7 million.
Trust chairman James Palmer said throughout the past financial year the trust faced "its most financially-challenging year since inception but continued robust donation activity, providing $5.7 million to help groups throughout its area".
"During the year the trustees were faced with the choice of shutting up shop by ceasing or dramatically scaling back distribution of donations, in order to preserve capital," he said.
"But trustees remained level-headed in the face of economic uncertainty and have been determined not to further contribute to the strains in our communities by retrenching our community support."
The annual meeting of the trust is being held at the Copthorne Hotel and Resort Solway Park from 6pm, Mr Palmer said.
A total of 742 community and voluntary groups throughout Wairarapa, Tararua, Horowhenua, Manawatu, Poverty Bay and Hawke's Bay shared the $5.7 million, which is only slightly less than for the same period a year ago when donations totalled $5.8 million, the trust reported.
Wairarapa groups this year captured $723,100 (last year $480,500); Poverty Bay, $650,000 ($606,600); Hawke's Bay $2.33 million ($2.37m); Tararua $344,000 ($436,300); Manawatu $$959,640 ($$1.35m); Horowhenua $582,379 ($275,260) with donations of $348,350 ($385,200) made to organisations for regional benefit.
Mr Palmer said the global economic crisis had a negative impact on the trust's core asset base, with net assets at March 31 this year being $115.8 million, and investment losses for the year set at $11.2 million.
The overall deficit was $18 million that was caused mainly by unrealised or paper losses on equity portfolios, he said.
The bulk of trust losses were
to its reserves, which are designed to act as a buffer in times of poor investment performance, a policy that has insulated the trust's core assets from the effects of the downturn, he said.
"While the trust was obviously disappointed at the erosion in the value of its assets, the performance of its investments compared favourably with other funds, such as the New Zealand Superannuation Fund."