NEW ZEALAND GAZETTE, No. 87

21 JULY 2010

EASTERN AND CENTRAL COMMUNITY TRUST INC

• ensure that the investment fund is invested prudently;
• provide inter-generational equity with regard to distribution levels over time;
• ensure money is available for distribution, as required, to meet the needs and distribution policies of the Trust;
• maintain the value of the investment fund’s capital base in real terms (CPI);
• maximise the funds available for distribution.

The Investment Portfolio

The Trust manages its Investment Portfolio in terms of its SIPO. The SIPO is monitored and amended on a regular basis by the Board of Trustees. The Portfolio’s strategic asset allocation is reviewed annually. The strategic asset allocation was last reviewed in November 2009. MCA NZ Limited assists both management and the Trustees with investment advice and the portfolio management.

Portfolio Characteristics

The Trust has its investments in seven different portfolios and the performance of each asset is measured against an appropriate index:

NZ Equities

The NZ Equity portfolio is managed by Forsyth Barr. The Investment mandate allows the Fund Manager to invest between five and twenty five percent of the portfolio in companies listed on the NZ Stock Exchange. This portfolio is measured against the NZSX40 (net Dividend) Index.

NZ Listed Property

The NZ Listed Property portfolio is managed by Forsyth Barr. The Investment mandate allows the Fund Manager to invest between nought and five percent of the portfolio in property companies listed on the NZ Stock Exchange. This portfolio is measured against the NZX Property Sector (net Dividend) Index.

NZ Bonds

The NZ Bond portfolio is managed by Esam Cushing Limited. The Investment mandate allows the Fund Manager to invest between ten and seventy percent of the portfolio in bonds. The mandate places limits on the underlying investment categories, along with credit and duration restrictions. This portfolio is measured against the NZX Corporate A Grade Index.

Off Shore Equities

The Off Shore portfolio is managed by State Street Global Advisors. The investment is in a pooled fund. The investment mandate allows the Fund Manager to invest between twenty and fifty-five percent of the portfolio in off shore equities. This portfolio is measured against the MSCI Gross ($NZ) Index and the strategic policy is to be fifty percent hedged back to NZ dollars.

Australian Listed Property

The Australian Listed Property portfolio is managed by State Street Global Advisors. The investment is in a pooled index trust. The investment mandate allows the Fund Manager to invest between nought and five percent of the portfolio in Australian listed property equities. This portfolio is measured against the S&P/ASX200 Property Accumulation index and the strategic policy is to be fifty percent hedged back to NZ dollars.

Off Shore Bond Securities

The Off Shore Bond Securities portfolio is managed by Vanguard. The investment is in a pooled hedged index fund. The investment mandate allows the Fund Manager to invest between ten and seventy percent of the portfolio in bonds. This portfolio is measured against the Citigroup WGBI Index and is fully hedged to Australian dollars. The strategic policy is to be one hundred percent hedged back to NZ dollars.

Cash

The Cash Portfolio is managed by the Trust Manager. The mandate places limits on the underlying investment categories, along with credit and duration restrictions. The investment