2010 Annual Report

On behalf of the Trustees of South Link Education Trust I am pleased to report that we have had a relatively smooth year with our investments. Our funds have maintained their value.

This year we have distributed $437,849 to the benefit of General Practice.

At 30th June 2010 our total capital had risen to $11,463,913.

Distributions as usual have been shared between organisations which advocate, educate and innovate within General Practice.

Specifically we have supported South Link Health Inc with funding for the annual conference plus assisting with smoothing the changes in the South Islands PHO environment. We have commissioned a report on ownership of general practice in the South Island and continued our commitment to medical students especially their leadership conference.

Our capital management has continued to run smoothly with Ross Fowler assisting us overseeing our funds. Our ‘Investment Policy Statement’ is reviewed and was adjusted slightly to take into account the changes in international finance; we continued to increase the amount we have allocated to international shares. I believe we have been able to select a mix of investments that are appropriate for our trust.

The mix continues to be balanced between cash and bonds in New Zealand, overseas bonds and shares both in NZ and overseas. These investments are all managed by professional organisations and Ross is assisting us to monitor returns received and fees incurred.

I am pleased to report that the trustees (Murray Tilyard, Dean Millar-Coote and myself) have an excellent working relationship and decisions have all been by consensus. We enjoy our role and have all learnt a great deal by being responsible for other people’s money.

As you know we have a policy of maintaining our capital at the inflation adjusted level of $10M at the inception of our trust. This limits distributions. I would welcome discussion as to whether we should intentionally run our fund down over one or two decades so as to allow more significant distributions in the working and retirement lives of the doctors who saved this money.

Stephen Brown

Stephen Brown
Board of Trustees

South Link Educational Trust

Summary of Financial Performance for the 12 months ended 30th June 2010

Income   2010 2009
Investment Income   738,194 123,024
Total Income   738,194 123,024
Operating Expenses      
Audit Fees 2,900   3,150
Legal Fees 2,293   -
Insurance 2,925   -
Trustee Fees and expenses 24,641   16,622
Consultancy 22,750   17,589
10,000   10,000
Total Costs   65,509 47,361
Surplus prior to distributions   672,685 75,663
Conference Costs 192,600   189,544
General Expenses 2,749   145
Locality Meetings -   112,000
Matagouri Club 2,500   4,120
Primary Care Network 180,000   -
Practice Purchase Options 30,000   -
Sponsorship 30,000   37,000
GP Research for General Practice -   63,304
Medical Student Sponsorship 37,000   36,500
Total Distributions   437,849 406,113
Net surplus (deficit) for year   (234,836) (330,450)


South Link Educational Trust

Summary of Financial Position as at 30th June 2010

ACCUMULated funds   2010 2009
Opening Accumulated Funds   11,229,07 11,559,527
Add Surplus/(Deficit) for year   234,836 (330,450)
Total Accumulated Funds   11,463,913 11,229,077
Represented by:      
Current Assets      
ASB Bank 295,296   49,638
GST Receivable 15,276   23,122
Total Current Assets   310,572 72,760
Managed Funds   11,175,715 11,258,768
Total Assets   11,486,287 11,331,528
Less Current Liabilities      
  Accounts Payable   22,374 102,451
Net ASSETS   11,463,913 11,229,077


The above financial summaries have been extracted from the South Link Education Trust’s full financial audited accounts.  If you would like to receive a copy of the full accounts, audited by WHK, please contact Dianne Railton at South Link Health.




South Link Educational Trust 2011