Our approach to looking after the trust's investment is to ensure it is protected and that our investments return a dividend to our reserve portfolio.
We have for the first time in 2008 announced our community investment strategy which focuses on a $12.7 million fund available over the next five years for projects and activities that are beneficial to this region.
We make no bones about it, projects that apply for money from this fund will have to show us a sound business case, clear governance and management structures and long term sustainability.
For sponsorships we will allocate $50,000 per annum for sponsorship of individuals or events. There is a $5000 maximum entitlement for sponsorship for any one applicant.
Reserves
This is potentially the most important part of our business, protecting and growing our reserve portfolio.
The liquid reserves found in the portfolio are made up of both cash, investments and securities that can readily be converted to cash in a relatively short period of time.
The reserve must be kept above a set minimum level to provide an asset protection fund, and will increase over time. This can be drawn on in urgent circumstances to assist in restoring uninsured assets in case of a catastrophic event affecting one of ECT's subsidiary companies.
The minimum level for asset protection set by the trustees is $15 million which will increase over time.
Investment
Investments have been made in infrastructure under the direction of the Eastland Group. In 2008-2009 - the trust anticipates a period of "bedding-in" of investments, particularly those in the aviation sector.
ECT will continue to play an important role as an investor within the community by using the trust deed provisions to initiate, encourage and sustain economic growth in the Eastland region.
Community Investment
"The trust is set to allocate $12.7 million to the Gisborne district over the next five years - April 1, 2008 to March 31, 2013 - to projects that will develop economic growth and enhance the region by "transforming" it.
This is the first time this part of the strategy has been set in place. The trust's objective until now has been to ensure its reserves are at a long term sustainable level. Now a proportion of its post tax net profit will be available for projects it believes fit its criteria.