✨ Financial Statements
ASB COMMUNITY TRUST
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010
Concentrations of risk arise when a number of financial instruments or contracts are entered into with the same counterparty or where a number of counterparties are engaged in similar business activities, geographic regions, or similar economic features that would influence their ability to meet their contractual obligations by reason of changes in economic, political or other conditions.
The Group 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 Group’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 Group’s Bond portfolio is managed by the Group using Standard & Poor’s rating categories.
Consolidated and Parent
This Year
| AAA to AA | A+ to A- | BBB+ to B | CCC, NR Other | 2010 $\000 | |
|---|---|---|---|---|---|
| New Zealand Bonds | 90.4% | 3.6% | 6.0% | - | 102,675 |
| Global Bonds | 61.8% | 9.5% | 21.4% | 7.3% | 313,077 |
| Cash | 85.7% | 8.3% | 6.0% | - | 45,615 |
Parent Trust
Last 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% | - | - | 9,948 |
Forward Exchange Contracts:
Hedging is undertaken by J P Morgan Chase Bank NA. At 31 March 2010 J P Morgan had an S & P credit rating of rating AA-.
| Consolidated and Parent Outstanding Contracts | 2010 | 2009 |
|---|---|---|
| Market value $\000 | 5,977 | 33,333 |
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NZ Gazette 2010, No 117
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ASB Community Trust Financial Statements
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💰 Finance & RevenueFinancial statements, Community Trusts, ASB Community Trust, Financial Assets, Financial Liabilities, Investment Portfolios, Global Equities, Global Bonds, Collateralised Commodity Futures, Global Property, New Zealand Equities, New Zealand Bonds, Cash, Credit Risk