| On 30 September 2002 Trustees of Rotorua
Energy Charitable Trust (Rotorua Trust) determined
that a portion of the funds held by the Trust
should be reserved for the protection of future
generations of those people who are likely
to benefit from the Trust.
The amount reserved (perpetual capital
reserve) was set at $100 million and was
managed by the Trust’s wholly owned
subsidiary, RECT Funds Management Limited
(RFM). Trustees agree a formula for the
distribution of funds to the Rotorua Trust
on an annual basis from the investment portfolio
managed on behalf of the Rotorua Trust by
RFM. The initial level was set at $5 million
per annum and in subsequent years this has
increased according to a formula for movements
in CPI and capital growth.
On 31 March 2007 the Rotorua Trust ‘Group’
was restructured. The loan from the Trust
to RFM was repaid by way of a transfer to
the Trust of investment assets to the value
of the loan ($100 million). The surplus
assets of RFM were also gifted to the Trust
at the same date and RFM was liquidated.
The management and advisory aspects of
the Trust’s investment assets are
now undertaken under a formal investment
management arrangement with Perpetual Capital
Management Limited (PCML), a wholly owned
subsidiary of the Rotorua Trust. |
