✨ Financial Statements and Investment Details
2196
NEW ZEALAND GAZETTE, No. 87
15 JULY 2004
| 2004 | 2003 | |
|---|---|---|
| $'000 | $'000 | |
| 13. Cash Flow Reconciliation | ||
| Net surplus (deficit) | 19,460 | (13,179) |
| Adjust for non-cash items: | ||
| Depreciation and loss on sale | 65 | 83 |
| Investment income | (8,201) | 13,499 |
| (8,136) | 13,582 | |
| Impact of changes in working capital items: | ||
| Increase (decrease) in accounts payable | (29) | 10 |
| Increase (decrease) in taxation payable | – | – |
| Increase (decrease) in donations payable | (538) | (1,037) |
| (567) | (1,027) | |
| Net cash inflow from operating activities | 10,757 | (624) |
14. Financial Instruments
The trust uses the services of an investment advisor to pursue an investment policy considered appropriate for the trust. The current policy is to achieve a long term asset allocation of:
| New Zealand equities | 7.50% |
|---|---|
| New Zealand fixed interest | 25.00% |
| New Zealand cash | 12.50% |
| Global fixed interest (fully hedged) | 27.50% |
| Global equities (50% hedged) | 27.50% |
| 100.00% |
The following financial assets have been recognised in the financial statements of the trust.
| 2004 | 2003 | |
|---|---|---|
| $'000 | $'000 | |
| Investments | 206,062 | 189,164 |
| 206,062 | 189,164 |
These are denominated in the following currencies:
| 2004 | 2003 | |
|---|---|---|
| $'000 | $'000 | |
| Australian dollar equivalents | 545 | 2 |
| Austrian schilling eqivalents | 63 | 8,771 |
| Belgian franc equivalents | 244 | 5,371 |
| Canadian dollar equivalents | 1,515 | 1,517 |
| Danish krona equivalents | 179 | 471 |
| Deutschmark equivalents | 1,623 | 1,481 |
| Euro equivalents | 27,646 | 3,225 |
| French franc eqivalents | 6,696 | 2,738 |
| Great Britain pound equivalents | 5,728 | 9,669 |
| Italian lira equivalents | 905 | 350 |
| Japanese yen equivalents | 9,276 | 3,843 |
| Netherlands guilder equivalents | 1,955 | 478 |
| New Zealand dollars | 94,739 | 95,285 |
| Spanish peseta equivalents | 865 | 5,010 |
| Swedish krona equivalents | 546 | 1,218 |
| Swiss franc equivalents | 1,755 | 760 |
| United States dollar equivalents | 50,130 | 47,378 |
| Other equivalents | 1,652 | 1,597 |
| 206,062 | 189,164 |
The unrealised gains and losses on forward contracts have been included in other equivalents.
Trust policy is to hedge exposure on fluctuations in foreign exchange on 100% of global fixed interest investments and 50% of global equity investments. At 31 March 2004, the trust’s investment managers had forward exchange contracts in accordance with this policy.
The market value of the New Zealand cover is $28,225,747 (nominal value – $28,660,401). The market value of the cover at balance date accounts for 51.40% of funds held in global equities. At balance date, global fixed interest investments were held by a New Zealand investment manager. No undisclosed credit risk exists.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 87
Gazette.govt.nz —
NZ Gazette 2004, No 87
✨ LLM interpretation of page content
💰
Notes to and Forming Part of the Consolidated Financial Statements for The Waikato Community Trust Incorporated
(continued from previous page)
💰 Finance & Revenue15 July 2004
Cash flow reconciliation, Financial instruments, Investment policy, Currency denominations, Hedge exposure