✨ Community Trust Financial Report
2580 NEW ZEALAND GAZETTE, No. 91 4 JULY 2011
EASTERN AND CENTRAL COMMUNITY TRUST INC
These committed and unpaid donations at 31st March 2011 had the following profile:
| Financial Year Approved | Number of Grants Outstanding | Value $ |
|---|---|---|
| 2010 | 6 | 415,500 |
| 2011 | 107 | 902,630 |
| Total | 113 | 1,318,130 |
Committed but unpaid donations at 31st March 2010 had the following profile:
| Financial Year Approved | Number of Grants Outstanding | Value $ |
|---|---|---|
| 2009 | 7 | 425,000 |
| 2010 | 115 | 1,479,930 |
| Total | 122 | 1,904,930 |
Market Risk
Market risk embodies the potential for both loss and gains and includes currency risk, interest risk and price risk.
The Trust’s investment strategy and the management of the investment risk are detailed in the SIPO. The Trust’s investments are diversified across a range of assets including New Zealand and Overseas equities, New Zealand bonds, New Zealand and Australian property and cash. Within each asset class there are defined policies and mandates to ensure diversification, to minimise investment risk and to limit exposure to any one investment. Each asset class has a defined target allocation and is managed within a defined allocation range.
In addition, the Trust has a Risk Management Policy which includes a Tactical Asset Allocation Policy. This policy is to identify times when the Trustees should instigate a process to review the short term investment strategy of the Trust.
a) Currency Risk
Currency risk is the risk that the fair value of, or future cash flows from financial assets will fluctuate due to changes in foreign exchange rates. The Trust has exposure to currency risk through its investments in offshore equities. The strategic investment policy requires full hedging of currency risk for overseas bonds, when held, and 50% hedging, on average, of currency risk for overseas equities. When exchange rates are at extreme levels the percentage of hedging is varied as determined by the Trust’s currency policy. Currency hedging on overseas equities has been increased marginally throughout the year. Hedging decisions have been constantly reviewed. Currency risk is self managed with the Bank of New Zealand with a range of tolerance.
At balance date the Trust’s exposure to currency risk was as follows:
| 2011 | 2010 | |
|---|---|---|
| Foreign Currency denominated assets | 79,048,880 | 74,041,605 |
| Less foreign currency contracts | 47,000,000 | 47,400,000 |
| Unhedged currency exposure at 31 March | 32,048,880 | 26,641,605 |
Geographic location of Investments:
| USA/Canada | 14,455,037 | 13,359,656 |
| UK/Europe | 13,930,347 | 13,298,964 |
| Japan/Asia | 18,246,934 | 17,614,771 |
| Australia | 32,416,563 | 29,768,214 |
| | 79,048,881 | 74,041,605 |
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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, Corporate Bonds, Cash, Forward Foreign Exchange Contracts, Foreign Exchange Risk, NZ Dollars, Bank of New Zealand, Standard and Poor’s Rating, Australian Dollars, Euros, British Pounds, Japanese Yen, US Dollars, Buy Amount, Deal Rate, Valuation Rate, Gain/Loss, Liquidity Risk, Trade and Other Payables, Committed but Unpaid Donations