2005 Hmstrust Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL REPORT 2005 HELEN MACPHERSON SMITH TRUST Contents 1 Introduction 2Trustees’ Report 4 General Grants Made in 2004-05 25 Investments and Grants 26 Financial Summary 28 An Historical Insight Trustees Bankers Contact Information Darvell M Hutchinson AM, Chairman National Australia Bank The office of the Helen Macpherson J Barry Hutchins OAM Smith Trust is located at: Legal Advisors Level 43, 80 Collins Street Staff Freehills Melbourne Victoria 3000 John A Bryson, Chief Executive Officer (to 5 May 2005) Auditors Telephone (+61 3) 9662 1951 W Barry Cook, Accountant (to 31 May 2005) PKF Facsimile (+61 3) 9662 1930 Darren J McConnell, Finance Executive Designers (from 9 August 2005) Email [email protected] MDM Design Associates Elizabeth M Gillies, Grants Executive Website www.hmstrust.org.au Pamela J Beech, Secretary and Receptionist Guidelines for grant applications are available on our website. Investment Committee Darvell M Hutchinson AM, Chairman J Barry Hutchins OAM J Gordon M Moffatt AM John A Bryson The HMS initials and the floral pattern used throughout this report, are engravings that appear on some of Helen’s personal effects. Introduction The life of Helen Schutt was not one that It is through the reporting of William’s life, was exhumed and her remains cremated in made headlines. She lived comfortably and especially after his retirement from the accordance with her wishes. Helen’s ashes quietly, first in Melbourne, then in Europe, bench, that we learn something of Helen’s were cast to the winds in the Marseilles secure in the financial and social legacy life in Europe where she lived from late in cemetery. No tombstone or monument of her family. 1923 until her death in 1951. existed in honour of her lasting legacy to society, until the Trustees unveiled a Helen was particularly fortunate in her In Europe, Helen travelled widely, with monument beside her parents’ graves forebears: on both sides they were hard a base in both Switzerland and the south in the Smith family plot in the Melbourne working and energetic Scottish immigrants. of France. She and William made extensive General Cemetery on St Andrew’s Day On the Macpherson side they were good trips together in Europe, their activities 2001, to commemorate the 50th judges of land and excellent farmers while widely reported in the press. Anniversary of the Trust. the Smiths were entrepreneurs with a talent in business, particularly as timber merchants. William Schutt died in 1933, aged 65, after The capital value of the Helen Macpherson Helen was born Helen Macpherson Smith an accident on board ship while returning Smith Trust at 30 June 2005 exceeded in Scotland in 1874 to her Scottish father, to Australia from one of his many visits to $78 million, and in the year to June 2005 Robert Smith and her Australian mother of Europe to see his wife. the Trustees approved grants of $7.3 million Scottish descent, Jane Priscilla Macpherson. to fund a range of Victorian charities across In April 1951, whilst living at the Hotel most sectors of community life. The 2005 Helen attended school in Scotland, Majestic in Cannes, France, Helen year grants are detailed in this Report. Europe and Australia. contracted pneumonia and died. Helen’s legacy being perpetual will In 1901, aged 27, Helen married William The story of Helen could have ended there continue indefinitely. Helen’s forebears – John Schutt. He was 33, a barrister, but for the fact that on her death she left both Macphersons and Smiths – were raconteur, Essendon footballer and later her residuary estate of £275,000 ($550,000) strong, energetic and resourceful. Many to become a Justice of the Victorian for the benefit of Victorian charities. family members contributed much to the Supreme Court. Of the 22 years of their advancement of Australian colonial life. It married life in Melbourne little is known. Despite this generous benefaction, Helen is fitting that Helen, and her family’s financial They had no children and Helen’s name was buried in a paupers grave in the Saint legacy have and will continue to leave a rarely appeared in the social pages of Pierre cemetery in Marseilles. Later, acting lasting mark on Australia and its people. newspapers or magazines. on instructions from solicitors, her body The capital of the Helen Macpherson Smith Trust was valued at 30 june 2005 at over $78 million. Grants totalling $7.3 million were approved in the year bringing aggregate grants to over $57 million since the trust was established. Helen Macpherson Smith Trust – Annual Report 2005 1 Trustees’ Report For The Year Ended 30 June 2005 Darvell M Hutchinson AM, J Barry Hutchins OAM, Chairman of Trustees. Trustee. The 2005 financial year again benefited from Investment income outcomes across their sectors to jointly a strong domestic economy and a buoyant submit proposals where more substantial Operating Income (after transferring to Capital Australian equities market, which in turn financial support is required. Finally, is our the dividend component of buy-backs and provided another strong result for the Trust. greater focus on initiating worthy pro-active also Call Option Premiums received) at $7.81 The considerable growth of the Trust over grants. In collaboration with organisations million was 11.83 per cent above the previous the past three years has created enhanced and communities, we are jointly identifying year and represented a yield of 10.9 per opportunities for us to assist the many community needs, and inviting organisations cent on the mean average market value Victorian charities we seek to serve. to develop high-level strategic projects that of investments during the year. focus on systemic change involving multiple Investments partnerships. The strong growth in yield over recent The Trustees are pleased to report that in years has improved our opportunities for Last year’s Annual Report referred to the the year to June 2005, the investment portfolio more strategic grant-making goals and this launch of The Macpherson Smith Community grew by 20.06 per cent, even after accepting is evident in the Grants Summary section Alliance, an exciting joint initiative with the several off-market buy-back opportunities of the Report. Victorian Government that established a (Telstra, BHP, Rio Tinto and Coles Myer) to $1 million fund, representing matched grants enhance our income yields for distribution Grants of $500,000 each from our Trust and Regional to charities. Without these buy-backs the We continue to receive a significant Development Victoria. The Alliance approved portfolio would have grown by 24.63 per cent, number of applications from across the 26 rural-based grants in October 2004 comfortably ahead of the ASX 200 and not-for-profit sector. During the year the totalling $478,481. All projects will assist All Ordinaries indices over the same period. Trustees have approved grants to more than selected small communities in rural Victoria 135 organisations which supported capital to further revitalise their towns. Further details With very few exceptions we continue to projects, the purchasing of equipment, and in regard to these projects are provided in invest in stocks with potential for both capital the undertaking of a wide range of program this Report. The second grant round of the growth and attractive grossed-up yields, and research projects. Alliance closed in August 2005. inclusive of imputed franking credits. We still hold over 30 per cent of our portfolio Our grant-making practices are now more Another joint pursuit of particular note is in banking stocks and this strategy has defined and fall into three different types the research project ‘Housing and Location again been vindicated. of activities. The first involves responding to Choices and Preference of People with a each formal application we receive as part Disability’, which is being undertaken by the With a strong rising stockmarket throughout of the grant-making cycle. Secondly, we are Australian Housing and Urban Research most of the year our opportunities to generate providing greater opportunities for charitable Institute. This particular segment of research Premium Income from the sale of Call Options organisations seeking to achieve common will be integrated within the Collaborative were reduced. 2 Helen Macpherson Smith Trust – Annual Report 2005 Research Venture that focuses upon 21st 80 Collins Street and significant upgrades Century Housing Careers and Australia’s of the accounting, administrative and Housing Future and will ensure that the needs communication systems. His replacement, of those with a disability are considered in the Darren McConnell, commenced early in development of an evidence base related to the new financial year as Finance Executive Australian 21st Century housing careers. Most and Accountant. Our Grants Executive, importantly, support for this project has Liz Gillies, further enhanced our grant-giving been provided on the basis of a partnership strategies during the year, which resulted between our Trust and the Gandel Charitable in some highly-focussed collaborative Trust and is a wonderful example of partnerships with other philanthropic trusts collaborative grant making. and government agencies. Pamela Beech continues as our Secretary and Receptionist. At our May 2005 Grants meeting the Trustees The Trustees express their appreciation to resolved to establish a Helen Macpherson our staff for their continued commitment Smith Scholarship Fund with an initial and high level of dedication to the Trust. contribution of $3 million and a future $2 million pledged from 2006 year grants. Outlook This $5 million Scholarship Fund will be As to our likely 2006 income levels, we are officially launched on the 55th Anniversary of confident that our strong investment portfolio the Trust in April 2006. The income from this will continue to provide marginal growth in endowment will provide tertiary scholarships income available for distribution, although for eligible rural students seeking to make the incidence of off-market buy-backs may the important transition to higher education.