✨ Financial Statements and Investment Portfolio
8 AUGUST
NEW ZEALAND GAZETTE
2565
Regional facilities reserve:
| 2002 | 2001 | |
|---|---|---|
| Opening balance | 926 | 1,926 |
| Increase/(decrease) in reserve | (926) | (1,000) |
| – | 926 |
Inflation and population reserve:
| 2002 | 2001 | |
|---|---|---|
| Opening balance | 13,480 | 10,583 |
| Increase in reserve | 62 | 2,897 |
| 13,542 | 13,480 |
Total equity | 114,685| 116,554|
3. Fixed Assets
Office furniture and equipment:
| 2002 | 2001 | |
|---|---|---|
| Cost | 73 | 72 |
| Accumulated depreciation | 47 | 53 |
| Book value | 26 | 19 |
4. Financial Instruments
Investments are stated at market value as at balance date. Accrued interest, accounts payable, community loans and donations approved not yet paid are stated at the amounts expected to be received or paid. Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the financial position.
Concentration of Investments
Ninety-nine point nine percent (99.9%) of the assets of the trust are represented by investments held with a range of financial institutions. However, the trustees consider the risk of non-recovery of these investments to be minimal. Maximum exposure to credit risk as at balance date is:
| 2002 ($000) | 2001 ($000) | |
|---|---|---|
| Bank balances | 3 | 51 |
| Bank term deposits | 33 | 192 |
| Accounts receivable | 3 | 13 |
| Community loans | – | 6 |
| Investments | 115,217 | 116,527 |
Currency Risk
The trust incurs currency risk as a result of investment transactions entered into by fund managers. The trust has a policy of fully hedging global bonds and fifty percent (50%) hedging of global equities.
Interest Rate Risk
The following investments of the trust are sensitive to changes in interest rates: Bank call accounts and deposits, government and local authority securities, and securities held by fund managers.
Fair Value
The carrying value is considered to be the fair value for financial instruments.
5. Investments
The value of investments which are held in equities and fixed interest are subject to market fluctuations. The total investment portfolio has been structured in such a way that any reductions in value in particular asset classes should be offset by increases in other classes; therefore no provision has been made for potential gains or losses that could occur due to market fluctuations.
The investment portfolio as at 31 March 2002 is diversified as follows ($000):
| ANZ Asset Management | State Street Global Advisors | Tower Asset Management | AMP Henderson | Total | |
|---|---|---|---|---|---|
| New Zealand equities | – | – | 5,526 | – | 5,526 |
| New Zealand fixed interest | – | – | – | 21,890 | 21,890 |
| New Zealand cash | 10 | – | 14,647 | 14,715 | 29,372 |
| Global bonds (fully hedged) | – | – | 23,154 | – | 23,154 |
| Global equities (50% hedged) | – | 35,275 | – | – | 35,275 |
| Total 2002 | 10 | 35,275 | 43,327 | 36,605 | 115,217 |
| Total 2001 | 39,475 | 30,371 | 46,681 | – | 116,527 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 94
Gazette.govt.nz —
NZ Gazette 2002, No 94
✨ LLM interpretation of page content
💰 Regional Facilities and Inflation Reserves
💰 Finance & RevenueRegional facilities reserve, Inflation reserve, Equity, Opening balance, Increase/decrease
💰 Fixed Assets Statement
💰 Finance & RevenueOffice furniture, Equipment, Cost, Depreciation, Book value
💰 Financial Instruments and Risk Management
💰 Finance & RevenueInvestments, Market value, Credit risk, Currency risk, Interest rate risk, Fair value
💰 Investment Portfolio Diversification
💰 Finance & RevenueInvestment portfolio, Equities, Fixed interest, Market fluctuations, Diversification