Investment

Investments have been made in infrastructure under the direction of the Eastland Group.

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.

Objectives

  1. To increase the trust's net income by at least 5% per annum.
  2. To fulfil the purposes of the trust as set out in the trust deed.
  3. To continually monitor the investments in ECT's subsidiary companies' to ensure that the shareholder value is added.
  4. To diversify the trust's investments, where possible, to ensure that concentrations of risk are minimised
  5. To ensure the trust has the appropriate management resources to execute the strategies.

Performance targets

 

  • Individual investments are expected to at least meet their cost of capital over the respective planning periods,
  • Consult and agree with the boards of each subsidiary the content of their Statement of Corporate Intent no later than 31 March 2008,
  • Monitor the performance of each subsidiary by receiving and considering financial information on at least a quarterly basis and receiving regular updates from the chairman of each board.

 

 

 

 

 

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 Gisborne region.

The general nature and scope of activities:

  1. To ensure the Eastland Group board compiles an appropriate statement of corporate intent and business plan. The trust will review and monitor the board's progress towards fulfilling their objectives.
  2. To review the trust's shareholder expectation manual with the Eastland Group.
  3. To review the remuneration of the Eastland Group directors.
  4. To undertake a review of the directors' skills in line with the requirements of the business.
  5. To ensure a succession plan is in place for various positions within the Eastland Group board.
  6. To regularly review the appropriateness of continued ownership of the equity securities in each subsidiary, taking into account developments that may have an impact on their long-term value.
  7. To appoint appropriate directors with appropriate skills to the boards of each subsidiary company,
  8. To continually review the trust's investment strategies to take account of any changed circumstances within the trust's operating environment.

The Eastland Group

The Eastland Group activities primarily comprise strategic asset intensive businesses crucial to the Gisborne district economy. The group is focused on three sectors - energy, logistics and aviation.

The trust is committed to supporting new investment initiatives within the group where the projects are commercially attractive to the trust.

All capital notes issued by the group pay interest to the trust at commercial rates.

 

Our Approach