Community Trust South (CTS) has posted a $9 million loss for 2023, it's second consecutive multi-million dollar loss, after another challenging investment year which still saw it distribute $5.58 million in local grants.

The philanthropic Invercargill-based institution was created in 1988 from community funds held by the former Trust Bank Southland.

Income from CTS's investments are now distributed, through grants and scholarships, for the benefit of communities in Southland, West Otago and the wider Queenstown area.

This years $9.17 million loss, after grants, follows last years loss of $7.74 million. This contrasts with 2021 when the CTS posted a $38.52 million profit after grants.

The Trust's net assets dropped from $248 million to $239 million on the back of the 2023 negative investment return of -0.9%. Last years return was just 0.4%.

The CTS blamed challenging times as both national and global economies continue to respond to Covid-19 impacts and the Russia/Ukraine War.

CTS Investment Committee Chair David Goble said the Trust had a long-term perpetual investment fund and so its focus was on investment performance over the longer-term.

"The Trust has achieved an average investment return of 5.87% over the past 10 years and so while we are seeing some short-term challenges our focus remains on the long-term position,” Goble said. 

And while this years grants were down from the previous years $7.82 million, due to a decision not to hold a major (over $75,000) grants round in 2023, CTS is still budgeting on distributing $12 million in the 2024 year.

CTS Heamana/Chair, Kirsty Pickett, said the Trust had approved a routine grants budget of $7 million for the current 2024 year.

Pickett said the Trust had also approved an additional $5 million towards the 1225 Museum Project, which recognised the significance of the project for the rohe (region).

"We acknowledge that it has been a financially challenging year for the Trust, however we are fortunate to have the highest per capita trust capital of all the Community Trusts in Aotearoa/New Zealand."

"We continue to take a balanced approach, considering the needs of the community now and into the future,” Pickett said.

CTS Chief Executive Officer Jackie Flutey said it was important to continue to provide funding support when communities were having a difficult time, as had been the case in the past few years.

 "The Trust continues to see broad demand for our funding across all of the areas we fund including arts, heritage and culture, education, health, wellbeing and active lifestyles and community development and community economic development."

"Particularly we hear that our most vulnerable communities have the greatest need when times are challenging."

"We recognise that the funding environment generally is tight and so any reductions in our funding can have a detrimental impact on organisations and their ability to deliver valuable services to our communities," Flutey said. 

CLICK HERE for more information.