New investment strategy pays dividends

Shetland Charitable Trust’s new investment strategy is proving its worth, with externally managed investments returning £27 million (11%) in the latest financial year.

The market value of the Trust’s investments at the end of March 2018 stood at £252 million, up from £232 million on the previous 12 months.

The strongest returns were posted by Edinburgh-based fund manager Baillie Gifford, which was awarded a new equity mandate that now accounts for 43% of the Trust’s funds. 

The market value of this mandate grew from £87 million to £108 million over the year.

The property mandate managed by Schroders, the diversified growth fund managed by Insight and the passive equity fund managed by BlackRock were close to their targets. 

Shetland Charitable Trust Chairman Bobby Hunter said: “When we changed our investment strategy in 2016, we placed an emphasis on securing better returns and I’m pleased to say that this is paying off.

“But we always look at market returns over the long term, so we will be looking for this growth to be maintained in what remain fairly volatile global financial markets.

“Since the Trust began, over £300 million has been disbursed to a wide range of local charities, organisations and individuals”

“The goal is to inflation proof the Trust’s reserves to ensure future generations continue to be benefit from Trust funding.”

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