✨ Financial Statements Notes
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011
As a responsible member of the world community, the Group aims to demonstrate leadership by advancing universal principles and responsible corporate citizenship to make the global economy more sustainable and inclusive. The Group supports the United Nations Global Compact and is a signatory to the United Nations Principles for Responsible Investment.
The Investment Portfolio
The Trust manages its Investment Portfolio in terms of its SIPO. The SIPO is monitored on a regular basis by the Board of Trustees and, as required, amended to reflect international best investment practice. The Portfolio’s strategic asset allocation is reviewed at three yearly intervals. The strategic asset allocation was last reviewed in 2010. The Trust has engaged Cambridge Associates Limited LLC as its Investment Adviser. The pricing of financial assets is undertaken by JP Morgan Chase Bank NA, the Trust’s Custodian.
Portfolio Characteristics
The Group is not directly involved with the analysis, sale or purchase of individual asset securities. Investments are made into either pooled funds or segregated accounts with Fund Managers. The performance of each asset class is measured against an appropriate internationally accepted standard benchmark or index for each asset class.
The investment portfolio is allocated across four buckets, each representing various asset classes. Each bucket performs a specific role in the portfolio. In combination they provide diversification and an appropriate level of risk and return at the portfolio level.
Growth:
The Growth bucket forms the engine room of the portfolio and consists of listed public equities in developed and emerging markets.
Diversified:
The Diversified bucket provides growth and volatility reduction and consists of long/short hedge funds and absolute return funds.
Inflation Proofing:
The Inflation Proofing bucket provides an inflation hedge, diversification and growth through a combination of real assets, both listed and unlisted such as commodities, property, natural resources and inflation-linked bonds.
Deflation Proofing:
The Deflation Proofing bucket provides a reduction in volatility and protection against any prolonged contraction. The bucket consists of fixed income and cash investments.
Credit Risk
Credit Risk represents the risk that a counterparty to a financial asset fails to discharge an obligation which will cause the Group to incur a financial loss.
The Group’s credit risk arises from any default by a counterparty. The current exposure at balance date is the fair value of these assets as disclosed in the Statements of Financial Position.
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NZ Gazette 2011, No 172
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ASB Community Trust Financial Statements Notes
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💰 Finance & Revenue30 May 2011
Financial Statements, Investment Portfolio, Strategic Asset Allocation, Credit Risk, ASB Community Trust