✨ Financial Risk Management Report
2894 NEW ZEALAND GAZETTE, No. 125 21 AUGUST 2009
The Trust manages credit concentration risks through:
- a diversified and non-correlated basket of investments across traditional and alternative classes
- through the use of a multi-fund manager approach to investments in its portfolio
- and by ensuring compliance with the individual mandate requirements of each investment.
The Trust’s Custodian reviews the portfolio for compliance against each investment mandate on a regular basis and reports findings to the Trust’s Management and Board of Trustees. Fund of Fund Managers ensure that underlying product fund managers comply with Fund mandates.
The credit quality of the Trust’s Bond portfolio is managed by the Trust using Standard & Poor’s rating categories.
| This Year | AAA to AA | A+ to A- | BBB+ to B | CCC, NR Other | 2009 $000 |
|---|---|---|---|---|---|
| New Zealand Bonds | 82.7% | 12.8% | 4.5% | - | 130,838 |
| Global Bonds | 61.5% | 16.3% | 21.3% | 0.9% | 261,598 |
| Cash | 98.8% | 1.2% | - | - | 43,281 |
| Last Year | AAA to AA | A+ to A- | BBB+ to B | CCC, NR Other | 2008 $000 |
|---|---|---|---|---|---|
| New Zealand Bonds | 91.70% | 6.20% | 2.10% | - | 214,648 |
| Global Bonds | 96.0% | 4.0% | - | - | 254,368 |
| Cash | 100.0% | - | - | - | 59,550 |
Hedging:
Hedging is undertaken J P Morgan Chase Bank (S & P rating AA-)
Liquidity Risk
Liquidity Risk is the risk that the Trust will encounter difficulties in meeting the obligations associated with its financial liabilities. This risk is managed through the Trust’s investment in a diversified portfolio of financial assets.
The Trust’s investment portfolio during the year under review consisted of only listed securities which under normal market conditions are readily convertible to cash. In addition the Trust maintains sufficient cash and cash equivalents to meet normal operating requirements.
The Trust’s financial liabilities comprise trade and other payables. At balance date, all trade and other payables were current, and are normally settled on the 20th of the month following invoice date.
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NZ Gazette 2009, No 125
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Financial Assets and Liabilities
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🏢 State Enterprises & InsuranceFinancial Assets, Financial Liabilities, Trust, Cash, Managed Funds, Investment Portfolio, SIPO, Global Compact, Fund Managers