New Zealand Gazette – 1998 – No. 107

Page 2657

✨ Financial Report Continuation



6 AUGUST
NEW ZEALAND GAZETTE
2657

  1. Fixed Assets—Group and Trust
Cost $ Accum Depn $ 1998 Value $ 1997 Value $
Land 457,419 Nil 457,419 Nil
Buildings 461,921 2,686 459,235 31,878
Office equipment 72,706 27,334 45,372 Nil
Furniture and fittings 121,299 2,999 118,300 Nil
Motor vehicles 46,000 14,249 31,751 76,991
Totals $1,159,345 $47,268 $1,112,077 $108,869
  1. Investments Managed By Fund Managers—Group and Trust

The group during the year placed investment funds with 3 institutional investment managers (fund managers), being ANZ Funds Management, Armstrong Jones (NZ) Limited, and B.T. Funds Management (NZ) Limited. Market values, and asset allocations, of these investments as at balance date were as follows:

ANZ (NZ$m) Armstrong Jones (NZ$m) B.T. (NZ$m) 1997 Value
New Zealand equities 5.44 7.31 7.79 Nil
Foreign equities 9.79 7.17 6.90 Nil
New Zealand bonds 17.73 10.97 9.37 Nil
Foreign bonds 8.61 9.80 10.59 Nil
Cash 0.76 7.60 7.47 Nil
Totals $42.33m $42.85m $42.12m Nil

Exposure to currency, interest rate and credit risk arises in the normal course of the fund managers’ management of the group’s investments. Derivative financial instruments are used by the fund managers as a means of reducing exposure to fluctuations in foreign exchange rates and interest rates. While these financial instruments are subject to the risk of market rates changing subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.

  1. Investments in Associates—Group and Trust

The total investment in Invest South Limited comprises:

1998 $ 1997 $
Cost price of shares purchased 1,250,000 Nil
Share of operating deficit (20,080) Nil
Equity accounted value of investment 1,229,920 Nil
  1. Income Tax

On 30 June 1998 the trustees determined to pay $10,080,508 income as beneficiaries’ income to Southland Community Trust Charities Limited, the income of which is exempt from income tax. Consequently the trust has made no provision for income tax.

  1. Events Subsequent to Balance Date

On 12 May 1998 NZ$45 million, previously invested in trading bank deposits, was invested with Morgan Stanley Asset Management Limited of London, pursuant to an investment management agreement dated 24 April 1998. Morgan Stanley as the managers of the investment have been given a mandate by the trustees to invest these funds in international equity investments.

  1. Reconciliation With Operating Surplus
Group 1998 $ Group 1997 $ Trust 1998 $ Trust 1997 $
Net surplus 14,300,201 154,366,106 13,560,949 154,366,106
Less grants (10,030,234) (6,899,161) (1,369,353) (6,899,161)
4,269,967 147,466,945 12,191,596 147,466,945
Add/(less) movement in working capital—
Increase (decrease) in liabilities 3,677,931 3,529,560 (1,634,583) 3,529,560
(Increase) decrease in accounts receivable 1,851,310 (2,080,603) 1,898,458 (2,080,603)
5,529,241 1,448,957 263,875 1,448,957
Add/(less) movement in items classified as investing/financing—
Interest and dividend received (13,046,539) (15,718,318) (12,352,528) (15,718,318)
Asset purchases (56,321) 0 (56,321) 0
Sale of Trust Bank New Zealand shares 0 (138,322,993) 0 (138,322,993)
(13,102,860) (154,041,311) (12,408,849) (154,041,311)


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✨ LLM interpretation of page content

💰 Financial Report of The Community Trust of Southland (continued from previous page)

💰 Finance & Revenue
30 June 1998
Financial Report, The Community Trust of Southland, Fixed Assets, Investments, Income Tax, Operating Surplus