✨ Community Trust Financial Report
2578 NEW ZEALAND GAZETTE, No. 91 4 JULY 2011
EASTERN AND CENTRAL COMMUNITY TRUST INC
mandate allows the Trust Manager to invest between 2% and 10% of the portfolio in cash. The portfolio is measured against the NZX 90 day bank bill index.
Performance against Policy
The following table shows the actual performance, the benchmark performance and value added for all asset classes held by the Trust for the year ended 31st March 2011:
| Asset | Actual Return (%) | Benchmark Return (%) | Value Added (%) |
|---|---|---|---|
| NZ Equities | 11.9 | 4.5 | + 7.4 |
| NZ Property | 6.0 | 6.7 | - 0.7 |
| NZ Bonds | 9.2 | 8.8 | + 0.4 |
| Offshore Equities | 5.7 | 7.2 | - 1.5 |
| Aus Property | 6.5 | 1.6 | + 4.9 |
| Offshore Bonds | 14.4 | 4.4 | + 10.0 |
| Cash | 4.2 | 2.9 | + 1.3 |
| TOTAL | 8.0 | 8.0 | 0.0 |
The following table shows the actual performance, the benchmark performance and value added for all asset classes held by the Trust for the year ended 31st March 2010:
| Asset | Actual Return (%) | Benchmark Return (%) | Value Added (%) |
|---|---|---|---|
| NZ Equities | 40.0 | 25.3 | + 14.7 |
| NZ Property | 10.7 | 14.7 | - 4.0 |
| NZ Bonds | 14.3 | 10.0 | + 4.3 |
| Offshore Equities | 32.1 | 22.2 | + 9.9 |
| Aus Property | 48.0 | 45.1 | + 2.9 |
| Offshore Bonds | 5.9 | 4.8 | + 1.1 |
| Cash | 4.1 | 2.6 | + 1.5 |
| TOTAL | 26.3 | 23.9 | + 2.4 |
Fair Value and Impairment
As all of the financial instruments are revalued at year end to published prices there is no subjectivity as to if the assets are impaired. The fair value equals the carrying value for all financial instruments.
Credit Risk
Credit risk represents the risk that a counterparty to a financial asset fails to discharge an obligation which will cause the Trust to incur a financial loss.
With regard to the credit risk arising for financial assets, the Trust’s credit risk arises from any default by a counterparty. The current exposure at balance date is the fair value of those assets as disclosed in the statement of financial position. There is no security held over these assets.
Concentrations of risk arise when a number of financial instruments or contracts are entered into with the same counterparty or where a number of counterparties are engaged in similar business activities, geographic regions, or similar economic features that would influence their ability to meet their contractual obligations by reason of changes in economic, political or other conditions.
The Trust manages credit concentration risks through;
- a diversified and non-correlated basket of investments
- ensuring compliance with the individual mandate requirements of each investment.
The Trust Manager, Trust’s investment advisor and the Trust’s Board review the portfolios for compliance against each investment mandate on a regular basis. The Fund Managers ensure that the funds they manage comply with their mandates as defined in the SIPO.
As at 31st March 2011 the maximum exposure to credit risk for New Zealand corporate bonds is detailed in the table below. The credit quality of the Trust’s NZ Bond portfolio is managed by the Trust using Standard and Poor’s rating categories.
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NZ Gazette 2011, No 91
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Eastern and Central Community Trust Financial Statements
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💰 Finance & RevenueFinancial Statements, Community Trusts, Eastern and Central, Revenue, Expenses, Profit, Investments, Bonds, Equities, Plant & Equipment, Cash, Donations, Reconciliation, Surplus, Cash Flows, Contingent Liabilities, Commitments, Lease, Financial Instruments, Risks, Credit Risk, Liquidity Risk, Market Risk, Currency Risk, Interest Rate Risk, Pricing Risks, Fair Value, Asset Allocation, Statement of Investment Policies and Objectives, SIPO