New Zealand Gazette – 2008 – No. 133

Page 3522

✨ Financial Analysis and Asset Classification



3522 NEW ZEALAND GAZETTE, No. 133 28 AUGUST 2008

From this table it can be seen that the long term expected return of the fund is 7.1% per annum and there is approximately a 68% probability that the return in any one year will be within the range of 2.2% to 12.0%. The trust’s actual return for the year was 2.8%. Based on the fund’s value at 31 March 2008 of $189.1 million, it translates that the trust’s income from the fund would lie within the range of $4.1 million to $22.6 million with an expected amount of $13.4 million. The trust’s actual income from the fund was $4.9 million.

The following table sets out the position for the year to 31 March 2007.

Asset Class Asset Allocation 31 Mar 2007 Long Term Expected Return p.a. -1 Standard Deviation Return p.a. 1 Standard Deviation Return p.a.
NZ Equities 5.3% 8.9% -8.1% 25.9%
Global Equities 27.1% 8.4% -6.5% 23.3%
NZ Fixed Interest 20.0% 6.0% 2.7% 9.3%
Global Bonds 31.9% 6.0% 2.7% 9.3%
NZ Cash 5.2% 5.4% 3.9% 6.9%
CCFs 5.1% 7.5% -10.5% 25.5%
Hedge Funds 5.3% 8.0% 0.0% 16.0%
Total 100.0% 7.0% 2.1% 11.9%

For that year, the long term expected return was 7.0% per annum when there was a 68% probability that the return in any one year would be within the range of 2.1% to 11.9%. The actual return was 6.7%. Based on the fund’s value at 31 March 2007 of $195.4 million, it translates that the trust’s income for that year would lie within the range of $4.1 million to $23.5 million with an expected amount of $13.8 million. The trust’s actual income from the fund for that year was $11.9 million.

These sensitivity analyses are based on the volatility of each asset class and the fund as a whole, as measured by plus or minus one standard deviation. The overall effect of the trust’s diversified portfolio is to reduce volatility and stabilise investment returns over time.

19. Asset and Liability Classification and Fair Value

Classification and fair values

Group 2008

Designated at fair value Held-to-maturity Loans and receivables Other amortised cost Total carrying amount Fair value
Assets:
Other receivables 248 248 248
Other investments 189,143 189,143 189,143
Total non-current assets 189,143 248 189,391 189,391
Trade and other receivables 14 14 14
Cash and cash equivalents 2,760 2,760 2,760
Total current assets 2,774 2,774 2,774
Total assets 3,022 192,165 192,165

| Liabilities: | | | | | | |
| Trade and other payables| | | | 3,416 | 3,416 | 3,416 |
| Total current liabilities| | | | 3,416 | 3,416 | 3,416 |
| Total liabilities | | | | 3,416 | 3,416 | 3,416 |

Group 2007

Designated at fair value Held-to-maturity Loans and receivables Other amortised cost Total carrying amount Fair value
Assets:
Other receivables 248 248 248
Other investments 195,427 195,427 195,427
Total non-current assets 195,427 248 195,675 195,675
Trade and other receivables 28 28 28
Cash and cash equivalents 885 885 885
Total current assets 913 913 913
Total assets 1,161 196,588 196,588

| Liabilities: | | | | | | |
| Trade and other payables| | | | 5,431 | 5,431 | 5,431 |
| Total current liabilities| | | | 5,431 | 5,431 | 5,431 |
| Total liabilities | | | | 5,431 | 5,431 | 5,431 |



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Online Sources for this page:

Gazette.govt.nz — PDF NZ Gazette 2008, No 133




✨ LLM interpretation of page content

💰 Sensitivity Analysis for Trust's Portfolio (continued from previous page)

💰 Finance & Revenue
Sensitivity Analysis, Asset Classes, Expected Returns, Standard Deviation, Trust Fund, Financial Performance

💰 Asset and Liability Classification and Fair Value

💰 Finance & Revenue
Asset Classification, Fair Value, Financial Statements, Investment Portfolio