✨ Financial Risk Report
2150 NEW ZEALAND GAZETTE, No. 96 1 JULY 2009
The Australian Listed Property Index Trust is reported in AUD. The remaining offshore equity investments are:
- Managed by State Street Global Advisors (Boston, USA).
- Invested in 24 individual country common trust funds.
- Reported in the fund’s base currency of USD.
Exposure to currency risk:
| Asset | Australian Dollar at 31 March 2009 | US Dollar at 31 March 2009 | Australian Dollar at 31 March 2008 | US Dollar at 31 March 2008 |
|---|---|---|---|---|
| Equities | $416,760 | $47,685,759 | $929,633 | $62,404,760 |
The following NZD exchange rates applied during the year:
| Currency | Average monthly Mid-Rate for 2008 - 09 | Average monthly Mid-Rate for 2007 - 08 |
|---|---|---|
| Australian Dollar | 0.8216 | 0.8750 |
| US Dollar | 0.6502 | 0.7598 |
Sensitivity Analysis for Currency:
A 10 per cent movement of the NZD against the following currencies at 31 March would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. This analysis is performed on the same basis for 2008.
Effect in NZD:
| Effect of Movements in NZD | Profit or (Loss) 31 March 2009 | Profit or (Loss) 31 March 2008 |
|---|---|---|
| 10% fall in NZD/AUD | 46,306 | 103,293 |
| 10% rise in NZD/AUD | (37,887) | (84,512) |
| 10% fall in NZD/USD | 5,298,417 | 6,933,862 |
| 10% rise in NZD/USD | (4,335,069) | (5,673,160) |
b) Interest Rate Risk
The Trust’s investments in fixed rate securities are subject to interest rate risk. The Trust’s SIPO requires a fixed rate security to have a minimum of a BBB rating or equivalent grade. The maximum exposure to each fixed security is controlled by the credit rating so that the higher the credit rating, the higher the allowable exposure. The fixed rate securities mandate ensures that a high percentage of the securities are rated A or higher. Short term deposits are invested for periods up to 365 days taking into account current interest rates.
The Trust’s cheque and call accounts are interest bearing. Any movement in interest rates on these accounts is minimal and not considered to be material.
At the reporting date the interest rate profile of the Trust’s interest bearing financial instruments was:
| Carrying Amount 2009 | Carrying Amount 2008 | |
|---|---|---|
| Fixed Rate Instruments | $49,580,516 | $55,803,015 |
| Variable Rate Instruments | $12,962,062 | $7,278,079 |
| Total | $62,542,578 | $63,083,094 |
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NZ Gazette 2009, No 96
✨ LLM interpretation of page content
💰 Currency and Interest Rate Risk Analysis
💰 Finance & RevenueCurrency risk, Interest rate risk, Financial instruments, Exchange rates, Sensitivity analysis