✨ Financial Statements Notes
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 2009 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 2009
| Asset Class | Asset Allocation
| (31 March 2009) | Long Term Expected
| Return p.a. | -1 Std Deviation
| Return p.a. | +1 Std Deviation
| Return p.a. |
|------------------|-------------------------------|-----------------------------|-----------------------------|-----------------------------|
| NZ Equities | 5.0% | 9.2% | -7.8% | 26.2% |
| Global Equities | 24.6% | 8.6% | -6.6% | 23.8% |
| Global Bonds | 53.5% | 6.3% | 3.0% | 9.6% |
| NZ Cash | 12.0% | 5.7% | 4.2% | 7.2% |
| Global Property | 2.5% | 8.1% | -3.9% | 20.1% |
| Hedge Funds | 2.4% | 8.3% | 0.3% | 16.3% |
| Total | 100.00% | 7.0% | 2.0% | 12.1% |
From table 2 the long term expected return for the Trust’s portfolio was 7.0% per annum and there was approximately a 68% probability that the return in any one year would be within the range of 2% to 12.1%.
As at 31 March 2009 the Trust’s Portfolio had NZ$109.3m under management. Assuming the short term return distribution approximates the long term return distribution there is approximately a 68% probability that the Trust’s revenue profit from investment activities will lie in the range of $2.2m to $13.2m, with an expected revenue of $7.7m for the year 1 April 2009 to 31 March 2010.
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 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, Capital management, Sensitivity analysis, Asset allocation, Expected return, Standard deviation