Dear Members of the Dilworth Community

I wish to take this opportunity to provide the first of an annual update.

The School

2009 was a very good year beginning with a roll of 520. The commencing roll this year was 540.

The academic results for the calendar year ending 2008 and 2009 were outstanding, with our students’ achievement continuing to be well above national averages in most subjects, and significantly above national averages for Maori and Pacific students.

A Metro article published during the year with the assistance of Professor John Hattie from the Education Department, University of Auckland, ranked Dilworth academically third out of 77 secondary schools in the Auckland Region.

In extra curricular activities (music, culture and sport), Dilworth continues to be a strong presence in the Auckland Region in all these areas.

A full review of boarding (conducted by an external expert) has resulted in a strengthening of the residential side to Dilworth.

A new Rural Campus has been acquired through the purchase of Hotel du Vin at Mangatawhiri just south of the Bombay Hills. It is currently hoped that the Rural Campus will be ready at the beginning of 2012 for up to 100 students (additional to the existing roll), and it is presently envisaged that the boys will spend the whole of an academic year at the Campus.

Earlier this year the Board acquired a substantial residence at 39 Market Road.

The Isabella Lodge (as it is now called) will be a special boarding facility that will be managed by house parents and designed to assist up to twelve students who require more individual attention.

That facility is expected to be up and running during the second term of this year.

Visitors to the School over the past decade will have noticed the changing and developing ethnic mix at Dilworth. This change has greatly enriched the social, cultural, sporting and academic life of the School, and further demonstrates the wisdom of James Dilworth in placing the emphasis in his will on “need” and specifically allowing for any “race or creed”. A far-sighted statement indeed.

88 scholarships have been awarded for 2010 from 494 applications received during 2009.

Last year we farewelled Mr Rex Hooton after 15 years of highly dedicated service as Head of the Junior Campus. He was replaced by Mr Peter Vos in August 2009.

This year we have farewelled our official Visitor, the Rt Rev Bishop John Paterson, also after 15 years of dedicated commitment in that position. We have welcomed his successor, Bishop Ross Bay at a recent Board meeting.

I encourage members of our community to view the latest ERO Report from the school inspectors, published in January this year. This is yet another excellent report, and a further reason for all of us to be proud of our school (the link is www.ero.govt.nz – enter “Dilworth” in “Search”).

Around the world, every school is basically as good as its Principal and we are very fortunate to have someone of the calibre of Donald MacLean who would have to be one of the best educationalists in the country.

The Trust Fund

The Trust is in good shape with invested assets in the region of $400 million plus a further $100 million of School assets. The total return (capital gains and income) over the last 10 years has exceeded that of most superannuation and other managed funds.

We balance on 31 January each year. On 31 January 2000 our Trust equity (the value of the Trust’s investments) was $192 million. Our equity presently stands at $394 million. You will see that, averaged over 10 years, our equity has doubled (105%), compared with inflation which has increased by 31% during the same period.

However, during that period we have also spent a total of $115 million running the School and an additional $30 million in capital expenditure.

In other words, we have ensured that our capital fund has increased by three times the rate of inflation after allowing for all of the costs of running the School and all of our capital expenditure. I am sure you will agree that is a very gratifying result.

Also, it is a high note on which our General Manager, Martin Thomson, will retire around the middle of this year.

The average increase in equity since the Trust’s inception in 1894 has been 6.82% pa (compounding) That is effectively the earnings, after meeting all the School capital and operating expenses, over the past 116 years.

This is quite a tribute to the mere 44 Trustees (who include the present five) over the 116 year life of the Trust.

The Board

It is important to understand that the Trustees are responsible for two quite different endeavours.

One is to maintain the Trust in real terms (ie, level with or ahead of inflation) and the other is responsibility for the School.

Indeed, we are very privileged to have that dual responsibility and are very conscious of the importance of it.

Six Trustees is a very efficient number and the convention which we have introduced of having three Old Boys and three non-Old Boys has worked exceptionally well. Occasionally, that has been two and four, or four and two, but those short periods of imbalance are insignificant in the overall scheme of things.

The present non-Old Boys (David Hunter, Brian Maltby and Hugh Fletcher) add enormous strength to the Board as have the many former Trustees in the past. Jon Wain and I greatly respect their contribution.

Identifying a replacement Trustee (whether Old Boy or not) is always a very sensitive issue. We are very anxious to ensure that every new Trustee is of high quality and brings a strong commitment. Also, we have to take into account the importance of having a balanced Board – that is, balanced in respect of differing necessary skills.

The vacancy since John Potter’s departure has lasted much longer than we would have wished, but we are “on the case” and there has been a good reason for the delay.

Concluding Comments

When governing the School and managing the fund, we have to keep at the front of our minds the needs of present and future generations of students. That must always be our first point of focus.

The Trustees wish you all well and hope that you find this update of interest.

Yours sincerely

Chairman

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