✨ Financial Instruments Report
Notes to the financial statements (continued)
in New Zealand Dollars ($000's)
13 Financial instruments (continued)
Table 2 shows the asset allocation for the Trust’s portfolio as at 31 March 2008 as well as the long term expected return for each asset class. The return one standard deviation above and below the expected return is also shown.
Table 2: Sensitivity Analysis for the Trusts Portfolio 31 March 2008
| Asset Class | Asset Allocation
| (31 March 2008) | Long Term Expected
| Return p.a. | -1 Std Deviation
| | Return p.a. | +1 Std Deviation
| | | Return p.a.
|------------------|-------------------|-------------------|-------------------|-------------------|
| NZ Equities | 5.2% | 9.2% | -7.8% | 26.2% |
| Global Equities | 33.5% | 8.7% | -6.2% | 23.6% |
| Global Bonds | 45.1% | 6.3% | 3.0% | 9.6% |
| NZ Cash | 6.4% | 5.7% | 4.2% | 7.2% |
| Global Property | 4.6% | 8.1% | -3.9% | 20.1% |
| CCF’s | 0.0% | 7.8% | -10.2% | 25.8% |
| Hedge Funds | 5.2% | 8.3% | 0.3% | 16.3% |
| Total | 100.00% | 7.4% | 1.2% | 13.6% |
From table 2 the long term expected return for the Trust’s portfolio was 7.4% per annum and there was approximately a 68% probability that the return in any one year would be within the range of 1.2% to 13.6%.
As at 31 March 2008 the Trust’s Portfolio had NZ$131.5m under management. Assuming the long term return distribution approximates the short term return distribution, then for the year 31 March 2008 to 31 March 2009 there is approximately a 68% probability that the Trust’s revenue profit from investment activities will lie in the range of $1.7m to $17.9m, with an expected value of $9.7m.
Classification and fair values
All financial assets (including investments, loans, trade receivables and cash) are recognised at fair value. All investments are designated at fair value. Loans and trade receivables are designated as loans and receivables.
Estimation of fair values
The methods used in determining the fair values of financial instruments are discussed in note 4.
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NZ Gazette 2009, No 122
✨ LLM interpretation of page content
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BayTrust Annual Report for 2008-2009 (continued)
(continued from previous page)
💰 Finance & RevenueFinancial Instruments, Capital Management, Sensitivity Analysis, Asset Allocation, Investment Returns