✨ Financial Statements Notes
15 AUGUST 2012 NEW ZEALAND GAZETTE, No. 96 2633
Bay of Plenty Community Trust Incorporated
Notes to the financial statements (continued)
in New Zealand Dollars ($000’s)
14 Financial instruments (continued)
The Trust continuously monitors the credit quality of major financial institutions that are counter parties to its financial instruments and does not anticipate non-performance by the counter parties. The Trust further minimises its credit exposure by limiting the amount of funds placed with any one financial institution at any one time.
The Trust makes a number of loans to eligible community groups and organisations over periods of up to five years. These are not grants and are fully expected to be repaid in full within the terms of the loan. The Trust requires evidence of the applicant’s ability to repay the loan and also considers a number of other factors before advancing the loan and deciding on whether or not to waive a security interest. At the reporting date, the Trust had one loan secured by a First Mortgage (note 11).
Liquidity risk
The following table sets out the contractual cash flows for all financial liabilities:
| Trust 2012 | Statement of Financial Position | Contractual cash flows | 6 months or less | 6-12 months | 1-2 years | 2-5 years | More than 5 years |
|---|---|---|---|---|---|---|---|
| Grants Payable | 232 | 232 | 232 | ||||
| Trade and other payables | 90 | 90 | 90 | ||||
| Total non-derivative liabilities | 322 | 322 | 90 | 232 |
| Trust 2011 | |||||||
|---|---|---|---|---|---|---|---|
| Grants Payable | 65 | 65 | 65 | ||||
| Trade and other payables | 101 | 101 | 101 | ||||
| Total non-derivative liabilities | 166 | 166 | 101 | 65 |
Capital management
The Trust’s funds include trust capital, grants maintenance reserve and inflation & population growth reserve.
The Trust’s policy is to maintain a strong capital base to sustain future development of the Trust.
The Trust is not subject to any externally imposed capital requirements.
The Trust’s policies in respect of capital management and allocation are reviewed regularly by the Board of Trustees, and during the year a decision was taken not to rebalance the investment portfolio while implementation decisions were being considered.
Sensitivity analysis
Table 1 shows the asset allocation for the Trust’s portfolio as at 31 March 2012 as well as the long term expected return for each asset class. The return one standard deviation above and below the expected return is also shown.
Table 1: Sensitivity analysis for the Trust’s portfolio 31 March 2012
| Asset class | Asset allocation (31 March 2012) | Long term expected return p.a. | -1 Std deviation return p.a. | +1 Std deviation return p.a. |
|---|---|---|---|---|
| NZ equities | 5.1% | 7.2% | -10.8% | 25.2% |
| Global equities* | 40.3% | 8.1% | -10.4% | 26.6% |
| Global bonds* | 48.0% | 5.4% | 1.9% | 8.9% |
| NZ fixed interest debt securities | 6.6% | 4.0% | 2.0% | 6.0% |
| Total | 100.00% | 6.5% | -2.1% | 15.1% |
*Fully hedged to NZ dollars within the funds they are invested
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NZ Gazette 2012, No 96
✨ LLM interpretation of page content
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Statement of financial position for BayTrust
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Liquidity Risk, Market Risk, Foreign Currency Risk, Interest Rate Risk, Quantitative Disclosure, BayTrust