Positive performance for trust despite market volatility

Shetland Charitable Trust’s investments grew to £301m this year despite market volatility in the wake of the coronavirus crisis.

Trustees met virtually on Thursday to discuss an investment performance report up to March 2020.

Around the world markets collapsed from mid-February by as much as 30 per cent due to the pandemic, according to the report, but there was a gradual recovery up to the end of March, which continued through April, May and June.

The trust’s investments exceeded their benchmarks over a 12-month period and increased by around £19m from £282m.

The fund had been “doing very well” in the 12 months up to the Covid-19 crisis, said executive business manager Raymond Mainland, which had its impact. In spite of this the trust still achieved a positive return.

These long-term investments and their performance are important to the trust and the achievements of its outcomes and objectives, including funding Shetland Amenity Trust, Shetland Recreational Trust and Shetland Arts.

The trust’s investments are managed by four fund managers: Baillie Gifford, BlackRock, Schroders and Insight.

The “stand out performer” was Baillie Gifford, according to Mr Mainland, while other managers’ performance reflected the market.

Most of the trust’s positive performance was driven by Bailie Gifford, which manages more than half its investments (£152.1m) and returned 18.7 per cent compared to an average market return of -6.7 per cent – more than 25 per cent higher.