✨ Financial Statements
2958 NEW ZEALAND GAZETTE, No. 104 13 JULY 2011
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 2010 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 Trust’s portfolio 31 March 2010
| Asset Class | Asset allocation
| (31 March 2010) | Long term expected
| return p.a. | -1 Std deviation
| return p.a. | +1 Std deviation
| return p.a. |
|--------------------|-------------------|-------------------|---------------------|---------------------|
| NZ equities | | 3.7% | 8.3% | -9.2% | 25.8% |
| Global equities | | 30.9% | 8.9% | -6.6% | 24.4% |
| Global bonds | | 52.1% | 6.7% | 3.7% | 9.7% |
| NZ cash | | 9.3% | 5.3% | 3.3% | 7.3% |
| Global property | | 3.4% | 8.4% | -8.1% | 24.9% |
| Hedge funds | | 0.6% | 6.1% | -8.6% | 20.8% |
| Total | | 100.00% | 7.4% | 1.0% | 13.7% |
From table 2 the long term expected return for the Trust’s portfolio is 7.4% per annum and there is approximately a 68% probability that the return in any one year will be within the range of 1% and 13.7%.
As at 31 March 2010 the Trust’s portfolio had NZ$137m 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 from investment activities will lie in the range of $1.4m to $18.7m, with an expected revenue of $10.5m for the year 1 April 2010 to 31 March 2011
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 fair value of financial assets is estimated for recognition and measurement or for disclosure purposes. Refer to the accounting policies for fair value estimation methods as discussed in note 4.
The following table represents the Trust’s assets that are measured at fair value at year end.
As at 31 March 2011
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Investments | 143,085 | — | — | 143,085 |
| Loans | — | — | 237 | 237 |
| Total Assets | 143,085 | — | 237 | 143,322 |
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NZ Gazette 2011, No 104
✨ LLM interpretation of page content
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BayTrust Financial Statements
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🏢 State Enterprises & InsuranceFinancial Instruments, Capital Management, Sensitivity Analysis, Investment Portfolio, Returns