The continued volatility of global investment markets means the Otago Community Trust will be forced to remain prudent with its donations to community projects for the foreseeable future, those attending the trust's annual meeting were told this week.
Trust chief executive officer Keith Ellwood said the trust's reserves were seriously depleted by the fluctuations in market prices in 2009, and trustees had been working hard since then to regain some of the loss.
The trust's reserves had increased from $202 million last year to $209 million this financial year.
However, the trust would need to remain cautious in order to continue the growth, he said.
"The investment markets continue to be very volatile and the best advice we have received is that that scenario is likely to continue for some time yet.
"I think we're going to have fairly subdued returns for the foreseeable future."
The trust donated $4.8 million to community projects in the 2012 financial year, and had budgeted for the amount to drop slightly in the 2013 financial year to $4.5 million, Mr Ellwood said.
"For the next financial year, the amount we donate will continue to be cautious. It's like a fishery. We need to take an amount that isn't going to reduce the base stock.
"If we take too much, it will take a long time to rejuvenate."
Trust chairman Stuart Walker said it had achieved a 7.25% return on its investments during the past financial year.
"We're very happy with that. It's very much on target for where we want to go in the long term."
The focus for the next 12 months would be to continue rebuilding the trust's reserves, remain within a restrained donation budget, but continue to welcome community project initiatives.
