Thanks primarily to a 66% stake in the country’s second-largest KiwiSaver provider, a Taranaki philanthropic trust is making more and more money, which has seen a record amount injected into the community.
The Toi Foundation’s 2022 annual report reveals that it distributed $22.3 million in grants in the past fiscal year to 915 recipients.
This was made possible by the nearly $70 million he received from his two assets – a 66% stake in Fisher Funds and his 100% ownership of TSB – and other income.
The new record also follows last week’s announcement that Fisher Funds has reached a $310 million deal to buy Kiwi Wealth, making it the second-largest KiwiSaver provider in New Zealand.
Although subject to approval by the Overseas Investment Office, it is a move, according to Toi Foundation Chairman Chris Ussher, that would “significantly increase shareholder returns” and strengthen funding capacity. of the trust in the future.
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At its annual meeting on Wednesday, Ussher told the roughly 70 attendees that 2022 has been a “milestone” year for the organization.
While this has been a time of consolidation for the team, the goal was to increase grant spending to $30 million by 2025 and steadily increase from there over time, a- he declared.
One of the keys to achieving this goal is effective asset management, Ussher said.
For the first time, the foundation has included performance information for its investment arm, known as Toi Foundation Holdings Ltd, in its annual report.
He detailed how Fisher Funds was the top earner by a massive margin, eclipsing the TSB’s contribution.
Fisher Funds brought in $56.1 million, while $12.5 million came from the bank’s dividend last year and $1.1 million from other income, for a total of $69.7 million. dollars.
Of this amount, $1.2 million was spent on operating costs, $2.9 million on finance costs, $31.7 million on debt repayment and $29.9 million was paid to the foundation, including $22.3 million in grants.
By comparison, the TSB paid nothing to the foundation in 2021, due to a Reserve Bank ban on banks paying dividends to shareholders during the Covid-19 pandemic, while 33.9 million dollars came through Fisher Funds.
And in 2020, $27.2 million came from the Fisher Funds, while the TSB contribution was $2.5 million.
In the report, the Toi Foundation’s chief executive, Maria Ramsay, said there had been “strong, forward-looking governance”.
This included a consistent focus on what Toi Holdings could do to increase revenue in order to increase community funding.
Ramsay also commented on the “considerable debt” required to buy Fisher Funds.
The annual report says $186m was borrowed in 2017 to take a majority stake in Fisher Funds and since then the debt has been reduced to $25m – with the $31.7m of debt having been repaid during the past financial year.
The $22.3 million grant series was awarded in four categories: community building, strategy, innovation, and investing for impact.
About $12 million was awarded to 34 Strategic Fund grants, while $8 million was used to help 870 offerings in the Community Building category, which is often requested by schools, clubs and sports groups. .
The largest sums were spent on strategic projects, including events and capital expenditures.
Waitara Initiatives Support Employment, also known as WISE Charitable Trust, received $1 million, as did Te Aranga o Taranaki.
WISE used the money to expand the reach of its program in the community, which focused on creating healthy, warm homes.
Meanwhile, Te Aranga’s work was currently focused on developing a Maori housing strategy for the area.
In terms of strategic capital grants, Ngāti Te Whiti Whenua Topu Trust was the big winner, with $2 million awarded for its marae project.