15 NOVEMBER

NEW ZEALAND GAZETTE

3831

(a) New Zealand Government securities comprising
Treasury bills and/or Government stock and/or
Inflation-Indexed Bonds tradeable only through
the New Zealand Debt Management Office;

(b) global equities; and

(c) New Zealand bank bills.

(iii) The commission shall invest the fund with the objectives of:

(a) achieving an average rate of return of at least 1% per annum over the Crown’s cost of borrowing over a rolling 10 year period (where the Crown’s cost of borrowing is measured by the change in the CSFB New Zealand Government Stock Gross Index);

(b) subjecting the fund to no more than 1 chance in 4 that over any 10 year period, the annual rate of return will be less than the Crown’s cost of borrowing; and

(c) ensuring that there is no more than 1 chance in 30 of the fund incurring an investment return of less than negative 2% in any one financial year.

(iv) The commission must invest the fund on a prudent, commercial basis and in doing so, must manage and administer the fund in a manner consistent with:

(a) best practice portfolio management;

(b) maximising return without undue risk to the fund as a whole; and

(c) avoiding prejudice to New Zealand’s reputation as a responsible member of the world community.

(v) The commission must prepare, and adhere to, a statement of investment policies, standards and procedures for the fund that is consistent with paragraph (iv) of this direction.

(vi) The commission must review those investment policies, standards and procedures for the fund at least annually.

(vii) A statement of investment policies, standards and procedures must cover (but is not limited to):

(a) the classes of investments in which the fund is to be invested and the selection criteria for investments within those classes;

(b) the determination of benchmarks or standards against which the performance of the fund as a whole, and classes of investments, will be assessed;

(c) standards for reporting the investment performance of the fund;

(d) ethical investment for avoiding prejudice to New Zealand’s reputation as a responsible member of the world community;

(e) the balance between risk and return in the overall fund portfolio;

(f) the fund management structure;

(g) the use of options, futures and other derivative financial instruments;

(h) the management of credit, liquidity, operational, currency, market and other financial risks;

(i) the retention, exercise or delegation of voting rights acquired through investments;

(j) the method of, and basis for, valuation of investments that are not regularly traded at a public exchange; and

(k) prohibited or restricted investments or any investment constraints or limits.

(viii) The commission must consult with the Minister of Finance (“the Minister”) if it intends to modify the statement of investment policies, standards and procedures to any substantive degree.

(ix) The commission must consult with the Minister if it intends to modify the portfolio composition from the following:

(a) New Zealand Government securities;

(b) up to a maximum of 35% of the market value of the fund in global equities; and

(c) up to a maximum of $250 million of New Zealand bank bills.

(x) The commission must consult the minister if it forms the intention to cover its pre-disaster currency exposures and may not proceed with the implementation of a hedging strategy without the consent of the minister being first had and obtained.

(xi) In the event of a major natural disaster likely to involve claims on the commission in excess of $250 million, the commission must consult with the minister before liquidating any part of the investment portfolio of the fund apart from the holdings of New Zealand bank bills.

(xii) If the commission considers at any time that any provision in this direction is inconsistent with another provision in this direction or any other direction, under section 12 of the Earthquake Commission Act 1993 or any provision under that Act, it shall advise the minister of that inconsistency.

Dated at Wellington this 30th day of October 2001.

DR MICHAEL CULLEN, Minister of Finance.

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Authorities and Other Agencies of State Notices

Land Transport Safety Authority

Transport Act 1962

Declaration of Vehicle With Motorcycle Controls to be a Motorcycle

Pursuant to section 2 (1) of the Transport Act 1962, I, Charles Anthony Johnson, Vehicle Compliance Officer,

hereby declare the vehicle specified in Schedule 1 to be a motorcycle for the purposes of the said Act and any Regulations under this Act, subject to the conditions specified in Schedule 2.

Schedule 1

Vehicle details

Make: Homemade

Model: Trike

Year: 1987

VIN No.: 1HFSC1419GA209627