New Zealand Gazette – 2012 – No. 72

Page 2033

✨ Trust Investment Portfolio



27 JUNE 2012 NEW ZEALAND GAZETTE, No. 72 2033

EASTERN AND CENTRAL COMMUNITY TRUST INC

The Trust manages its foreign exchange risk by using forward exchange contracts to cover varying amounts of its foreign currency exposure. Such forward exchange contracts have the economic effect of converting foreign currency denominated balances into NZ dollars. These forward exchange contracts are not treated as hedges for accounting purposes. All contracts are with the Bank of New Zealand which has a Standard and Poor’s Rating of AA.

At balance date the Trust’s exposure to currency risk was as follows:

2012 $ 2011 $
Foreign currency denominated assets 80,032,172 79,048,880
Less forward foreign exchange contracts 42,680,000 47,000,000
Unhedged currency exposure at 31 March 37,352,172 32,048,880

Geographic location of Overseas Investments:

2012 $ 2011 $
USA/Canada 12,068,754 14,455,037
UK/Europe 10,601,529 13,930,347
Japan/Asia 17,250,737 18,246,934
Emerging Markets 7,324,290 —
Australia 32,786,862 32,416,563
80,032,172 79,048,881

The following table details the three-month forward foreign exchange contracts outstanding as at 31st March 2012:

Currencies Buy Amount NZD Deal Rate 8 Feb 2012 Valuation Rate 31 Mar 2012 Gain/(Loss) NZD
Australian Dollars 22,600,000 0.7764 0.7889 358,166
Euros 3,180,000 0.6275 0.6120 (80,522)
British Pounds 1,800,000 0.5235 0.5116 (41,773)
Japanese Yen 1,500,000 63.788 67.054 72,847
US Dollars 13,600,000 0.8314 0.8171 (235,830)
TOTAL 42,680,000 72,888

The following table details the three-month forward foreign currency contracts outstanding as at 31st March 2011:

Currencies Buy Amount NZD Deal Rate 9 Feb 2011 Valuation Rate 31 Mar 2011 Gain/(Loss) NZD
Australian Dollars 25,030,000 0.7676 0.7368 (1,044,490)
Euros 4,500,000 0.5665 0.5362 (253,461)
British Pounds 2,210,000 0.4803 0.4708 (44,451)
Japanese Yen 3,220,000 63.389 62.590 (35,810)
US Dollars 12,040,000 0.7707 0.7571 (214,689)
TOTAL 47,000,000 (1,592,901)

The Australian Listed Property Index Trust, the Off Shore Bond Securities Index Fund and the Australian shares held within the NZ & Australia Equity portfolio are reported in AUD by the fund managers. The remaining offshore equity investments are:

  • Managed by State Street Global Advisors (Boston, USA).
  • Invested in 43 individual country common trust funds.
  • Reported by the fund manager in the fund’s base currency of USD.

Exposure to currency risk:

Currencies AUD at 31 Mar 2012 NZD USD at 31 Mar 2012 NZD AUD at 31 Mar 2011 NZD USD at 31 Mar 2011 NZD
Equities/Bonds 17,376,537 62,655,634 13,724,811 65,324,066


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Online Sources for this page:

Gazette.govt.nz — PDF NZ Gazette 2012, No 72




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💰 Eastern and Central Community Trust Investment Portfolio (continued from previous page)

💰 Finance & Revenue
Investment Portfolio, Asset Allocation, Performance Measurement, Trust Management