✨ Financial Statements Notes
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2011
The Trustees have adopted an investment strategy with a targeted long term annual rate of return of 7.6% (2010 - 6.8%) of the Trust’s capital value. Recognising that actual returns are likely to fluctuate from year to year, the Trust retains the variation from the target in Trust funds so that in years when investment returns are less than the target sufficient funds are available to meet expenditure and make distributions. If the Trust fund falls below the value that needs to be maintained for the benefit of current and future generations the level of expenditure and distributions are reviewed by the Trust.
The Trust’s present donation policy is to distribute annually as donations, 4% (2010 - between 3% and 4%) of the Trust fund value that should be maintained for the benefit of current and future generations. The Trustees recognise that for a number of reasons this might not always be achievable and that there will inevitably be fluctuations between the donations distributed and the actual target.
The Trust uses the services of an investment advisor to pursue an investment policy considered appropriate for the Trust. The Trust selects fund managers according to their style and specialist skills including the ability to protect capital in negative or down markets. In the year to 31 March the Trust began implementing the following strategic asset allocation:
| 2011 | 2010 | |
|---|---|---|
| Australasian Equities (2010 - New Zealand) | 15.0% | 10.0% |
| New Zealand Fixed Interest | 10.0% | 10.0% |
| New Zealand Cash | 5.0% | 5.0% |
| Global Equities | 25.0% | 27.5% |
| Global Fixed Interest | 25.0% | 47.5% |
| Property Fund | 10.0% | - |
| Alternatives (Infrastructure Fund) | 10.0% | - |
| Total | 100.0% | 100.0% |
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument, are disclosed in note 1 to the financial statements.
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NZ Gazette 2011, No 119
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Notes to Financial Statements of the Waikato Community Trust
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💰 Finance & RevenueFinancial Statements, Investment Strategy, Donation Policy, Asset Allocation, Accounting Policies