New Zealand Gazette – 2006 – No. 100

Page 2986

✨ Financial Report



2986 NEW ZEALAND GAZETTE, No. 100 24 AUGUST 2006

Income fluctuation reserve:

  • Opening balance
    • 14,885
    • 13,649
  • Increase/(decrease) in reserve
    • 9,034
    • 1,236
  • Total
    • 23,919
    • 14,885

Inflation and population growth reserve:

  • Opening balance
    • 19,136
    • 15,896
  • Increase in reserve
    • 3,577
    • 3,240
  • Total
    • 22,713
    • 19,136

Total equity

  • 135,940
  • 123,329
2006 2005
$000 $000

3. Fixed Assets

Office furniture and equipment:

  • Cost
    • 107
    • 67
  • Accumulated depreciation
    • 49
    • 44
  • Book value
    • 58
    • 23

4. Financial Instruments

Investments are stated at market value as at balance date. Accrued interest, accounts payable 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-eight point five percent (98.5%) of the assets of the trust are represented by investments held with a range of financial institutions (2005 – 98.9%). 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:

2006 2005
$000 $000
Bank balances 14 42
Bank term deposits 664 280
Accounts receivable 4 11
Interest free loans 987 1,053
Investments 135,527 122,885

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 global equities.

Interest Rate Risk
The 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, fixed interest, property and hedge funds are subject to market fluctuations. The total investment portfolio is diversified in such a way that over time reductions in value in particular asset classes should be more than offset by increases in other classes. Investments are disclosed at market value at balance date and any gains (losses) arising from that treatment are shown as “investment gains (losses)” in the statement of financial performance. Therefore, no provision has been made for potential gains or losses that could occur due to future market fluctuations. The investment portfolio as at 31 March 2006 is diversified as follows:

Tower Asset Management AMP Capital Investors Russell Investment Group Total
$000 $000 $000 $000
New Zealand equities 7,196 – – 7,196
New Zealand fixed interest – 31,027 – 31,027
New Zealand cash 3,174 5,008 – 8,182
Global bonds (fully hedged) 34,432 – – 34,432
Global equities (fully hedged) – – 40,732 40,732
Global property – – 7,258 7,258
Hedge fund of funds* – – 6,700 6,700
Total 2006 44,802 36,035 54,690 135,527
Total 2005 49,975 39,808 33,102 122,885

*Hedge funds: NZD \$6.7 million was placed with the manager in March, but not physically invested until April.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 100


Gazette.govt.nz — PDF NZ Gazette 2006, No 100




✨ LLM interpretation of page content

🏢 Bay of Plenty Community Trust Annual Report (continued from previous page)

🏢 State Enterprises & Insurance
3 July 2006
Community Trust, Annual Report, Bay of Plenty, BayTrust, Financial Performance, Donations, Charitable Activities