✨ Financial Statements Notes
4888 NEW ZEALAND GAZETTE, No. 172 9 NOVEMBER 2011
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011
At balance date the Group’s exposure to currency risk was as follows:
| Group | Trust | |||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| $000 | $000 | $000 | $000 | |
| Foreign currency denominated financial assets | 954,963 | 781,242 | 954,963 | 781,242 |
| Hedged currency exposure as at 31 March | (620,505) | (763,351) | (620,505) | (763,351) |
| Unhedged currency exposure at 31 March | 334,458 | 17,891 | 334,458 | 17,891 |
| | | | | |
| USA and Canada | 252,243 | 10,463 | 252,243 | 10,463 |
| United Kingdom and Europe| 61,338 | 5,508 | 61,338 | 5,508 |
| Japan and Far East | 20,877 | 1,920 | 20,877 | 1,920 |
| Unhedged currency exposure at 31 March | 334,458 | 17,891 | 334,458 | 17,891 |
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 2011, 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
|------------------------|-------------------------------|--------------------------|
| Growth Assets | -5.8% to +26.6% | -28,044 to +128,616 |
| Diversified Assets | -1.0% to +17.4% | -1,664 to +28,954 |
| Inflation Proofing Assets | -6.6% to +23.4% | -5,261 to +19,930 |
| Deflation Proofing Assets | +0.1% to +11.5% | +362 to +41,628 |
| Total Portfolio | -0.8% to +17.6% | -8,841 to +194,503 |
There is a 68% probability that the return in any one year will be within the range of -0.8% to 17.6%.
The current year sensitivity analysis is not compatible with the prior year as the investment strategy and monitoring thereof have changed during the current financial year.
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NZ Gazette 2011, No 172
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ASB Community Trust Financial Statements Notes
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💰 Finance & RevenueCurrency Risk, Pricing Risk, Financial Assets, Fair Value, Sensitivity Analysis, ASB Community Trust