Every grant Top of the South Community Foundation (TSCF) makes is only possible because of the funds behind it, and looking after those funds is a job in itself. This time, we're turning the spotlight on the Finance, Audit, Investment & Risk (FAIR) Committee, the group responsible for making sure TSCF's money is managed wisely, today and for the long haul. 

Paul Nicholson, Trustee and Chair of the FAIR Committee, talked us through what the role involves. 

It's steady, technical work, and not the kind that tends to make headlines. But without it, none of TSCF's giving would be sustainable. 

The Committee's Role

Established in 2025, the FAIR Committee has replaced our existing Investment Advisory Committee, and brings together four Trustees with backgrounds in finance, investment, governance and business leadership:  

• Paul Nicholson — Trustee & Chair of the FAIR Committee 

• Jane Peterson — Trustee & Chair of the TSCF Board 

• Howie Timms — Trustee 

• Alex Hannant — Trustee 

The Committee meets regularly throughout the year and reports to every Board meeting, providing independent oversight of the Foundation's financial management, investment strategy, risk framework, audit processes and compliance responsibilities. 

Thinking beyond this year

Every gift held by TSCF is invested with generations in mind, not just this year's grants. That long horizon means the Committee's role is never just about performance. It is about protecting the real value of donor capital, so funds can keep giving well beyond the lifetime of the person who first gave. 

Paul puts it simply: "When someone sets up an endowment fund, they're making a promise to the future. Our job on the Committee is to keep that promise, thinking in decades, not years, balancing what we do today with what Te Tauihu will need down the track." 

Statement of Investment Principles and Objectives (SIPO) 

This year the Committee completed the Foundation's first Statement of Investment Principles and Objectives (SIPO), which replaced the existing Investment Policy Statement. 

The Committee carried out a thorough review of investment philosophy, objectives, governance, risk parameters and performance expectations, before recommending the SIPO to the Board, which adopted it. 

As Paul explains: "As the Foundation’s investment portfolio has grown, so has the need for a clear formal framework to guide how those investments are managed. The SIPO sets out how decisions get made, who's responsible for what across the Board, the Committee and our advisers, and how we'll measure performance over time. It's a foundational piece of work that will guide the Foundation's investment approach for years to come." 

The SIPO now sets out how investment decisions are made, who is responsible for what across the Board, the Committee and investment advisers, and how performance will be monitored over the long term. 

Balancing growth and risk

Paul says: "We're never chasing the highest possible return. Working closely with Craigs Investment Partners, our approach has been deliberately balanced, and moving to a multi adviser model this year will only strengthen that discipline."

This year the Committee continued monitoring the performance of Craigs Investment Partners, the Foundation's current investment adviser, against agreed benchmarks, and reviewed portfolio positioning as market conditions shifted. It also recommended the Foundation move towards a multi investment adviser model, giving donors a future choice of approved advisers while maintaining strong governance and oversight.

The Committee confirmed that the Foundation's balanced investment approach remains the right one, aimed at sustainable long-term returns while preserving the real value of capital for future generations.

Deciding How Much Is Available to Give 

One of the Committee's key responsibilities each year is recommending the annual distribution rate, the percentage of invested assets made available for grants. 

This involves weighing investment performance, expected future returns, market conditions, inflation, liquidity needs, and the Foundation's long term goal of preserving the real value of its capital.  

As stated by Paul: "It would be easy to give away as much as possible each year, but that would be short-sighted and not sustainable. Every year we have to be hard-headed, weighing investment performance, inflation and community needs to land on a rate that lets us support communities today, while protecting what's needed for tomorrow."  

Oversight You Can Trust

Beyond investment decisions, the Committee reviews financial reports, monitors the Foundation's financial position, considers the annual budget and forecasts, and oversees the external audit process. It keeps a close eye on internal controls, legislative compliance, and the management of financial, operational and investment risk. The Foundation has a high responsibility to donors and the community to manage and protect their funds.  

Paul comments: "It’s important for them to know their generosity is looked after with real rigour, working with Craigs Investment Partners, regular reporting to the Board, and independent audits. We pay attention. Nothing happens without oversight, and this ensures that people can give with confidence." 

Looking ahead

The Committee believes this year's work has strengthened the Foundation's financial governance and investment oversight, building a solid platform for future growth. 

As Paul summarises: "Completing our SIPO is something I'm genuinely proud of. It's not glamorous work, but it supports everything else we do. I'm looking forward to seeing the Committee's continued evolution as a critical part of the Foundation's governance structure." 

On behalf of the Board, the Committee thanks the Foundation's management team, Craigs Investment Partners and our other advisers, the external auditor and fellow Trustees for their contributions this year. 

End.