NEW ZEALAND GAZETTE, No. 117

14 SEPTEMBER 2010

ASB COMMUNITY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010

At balance date the Group’s exposure to currency risk was as follows:

USA and Canada | 10,463 | 10,463 | (1,141) |
United Kingdom and Europe | 5,508 | 5,508 | (618) |
Japan and Far East | 1,920 | 1,920 | (342) |
| (Overhedged) unhedged currency exposure at 31 March | 17,891 | 17,891 | (2,101) |

Pricing Risk

Pricing Risk is the risk that the fair value of financial assets will increase or decrease as a result of changes in market prices, whether these changes are caused by factors specific to individual stocks or factors affecting all financial assets in the market. Pricing risks arise from the Group’s investment portfolio.

The Group’s financial assets are priced at fair value by the Trust’s custodian. The effect on the Group’s Statement of Comprehensive Income and Statement of Financial Position at 31 March 2010, due to a reasonably possible change in market factors is represented in the following table:

| | Sensitivity Range
(-1 to +1 standard deviation
from the expected annual return) | Sensitivity Impact
(from the expected annual return)
$000 |
|--------------------------|------------------------------------------------------------|--------------------------------------------------------------------------------------|
| NZ Equities | -9.5% to +28.5% | -10,152 to +30,455 |
| Global Equities | -6.0% to +26.0% | -23,877 to +103,468 |
| NZ Bonds | -1.0% to +13.0% | -1,026 to +13,348 |
| Global Bonds | -1.0% to +13.0% | -3,131 to +40,700 |
| NZ Cash | +2.0% to +6.0% | +912 to +2,737 |
| CCF’s | -11.0% to +27.0% | -5,737 to +14,081 |
| Global Property | -5.0% to +23.0% | -903 to +4,153 |
| Total Portfolio | -0.7% to +16.5% | -7,297 to +171,991 |

There is a 68% probability that the return in any one year will be within the range of -0.7% to 16.5%.