✨ Financial Statements
18 AUGUST 2010 NEW ZEALAND GAZETTE, No. 104 2793
Notes to the financial statements (continued)
in New Zealand Dollars ($000's)
13 Financial instruments (continued)
Interest rate risk
The Trust has bank call and deposit accounts, government and local authority securities and other investments held by the Trust’s fund managers that are exposed to interest rate risk. Interest rate swaps have been entered into to achieve an appropriate mix of fixed and floating rate exposure within the Trust’s policy.
Other market price risk
The entity is not exposed to substantial other market price risk arising from financial instruments.
Quantitative disclosure
Credit and Interest rate risk
The carrying amount of financial assets represents the Trust’s maximum credit exposure.
The Trust’s maximum exposure to credit risk for investments by geographic regions and investment type and information relating to the interest rate risk is as follows:
| Carrying amount | 2010 | 2009 |
|---|---|---|
| New Zealand cash | 12,785 | 13,159 |
| New Zealand equities | 5,033 | 4,105 |
| Global bonds | 71,345 | 58,605 |
| Global equities | 42,272 | 28,140 |
| Global property | 4,646 | 2,576 |
| Hedge fund of funds | 892 | 2,718 |
| Total financial assets | 136,973 | 109,304 |
Management of the interest rate risk is performed by the fund managers by use of interest rate swaps. The average interest rate is determined inclusive of interest rate swaps that are embedded with the funds.
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NZ Gazette 2010, No 104
✨ LLM interpretation of page content
💰
BayTrust Annual Report for the year ended 31 March 2010
(continued from previous page)
💰 Finance & RevenueFinancial statements, Revenue, Expenses, Grants, Investments, Taxation, Cash, Trust Funds, Interest rate risk, Credit risk, Financial instruments