TREASURER'S REPORT - 2007
As a result of continued generous support from the community, the research budget for the current year (1 April 2007 - 31 March 2008) has been set at $1.6 million. When I first became associated with the Neurological Foundation in 1999 the research budget was $650,000 and only a year earlier it had been $450,000. We hope to be able to budget for further increases in the future.

Part of the reason for the increase has been the management of the Foundation's funds by professional managers. The return on capital in the 1998 financial year was 13.7%, much of which was due to the high return from overseas investments, particularly equities. In the 1997 financial year it was 8.4%. The return subsequently has been greatly affected by the international recession with the possibility of an overall loss, a negative return as the managers describe it, in 2002. Thankfully that did not eventuate but the Executive Committee considered the subject in depth and does so at each budget meeting and at other times during each year. On balance, we believe that a diversified portfolio of investments is best and therefore we will continue to recommend that the Foundation's assets be kept in fixed interest and equities, both in New Zealand and overseas.

A review of the Foundation's investment policy was undertaken in 2003 and two advisors engaged: New Zealand Assets Management (NZAM) assumed responsibility for the Foundation's equities portfolio and Asia Pacific Risk Management (APRM) was contracted to advise on fixed interest investment. NZAM has a range of investment managers in Australia, Asia, the United States and Europe which ensures that a variety of management styles are used and that risk is reduced by diversification. APRM's Roger Kerr is a regular commentator on the Newstalk morning radio programme. In appointing these two firms, the Executive Committee anticipated a considerable improvement over the low returns from investments of previous years and I am pleased to report that this policy has borne fruit.

Donations and bequests continue to be the principal source of income for the Foundation. Donations have increased steadily each year and now form a substantial part of the Foundation's income. The Foundation has an Annual Householder Appeal each July which gives the general public an opportunity to support neurological research and members and supporters also make donations throughout the year. I am pleased to report that bequests have also continued at a high level. In the last five financial years bequests have averaged over $1 million each year and so far this year they have continued to reflect that high level of support. The Foundation is most grateful to all of its supporters who have made this possible.

The special Chair of Clinical Neurology campaign this year has been successful, with $3 million of a $4 million target achieved. I am confident that the remaining funds will be raised and in anticipation the Foundation has made a commitment to fund the Chair (a professor and a research team) for an initial period of 5 years, with the aim of making a long-term commitment.

Controlling costs is just as important as increasing income and I work closely with the Executive Director and other committee members in this area. We have instituted reporting systems to ensure that the operating expenses of the Foundation are controlled within the budget parameters set by the National Council. Budgeting and careful cost versus benefit analysis is an important function of the Executive Committee to ensure that our supporters get excellent value from their investment in the research community.

Amanda Davies