✨ Financial Statements
2958 NEW ZEALAND GAZETTE, No. 109 16 AUGUST 2013
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2013
At balance date the Trust exposure to currency risk was as follows:
| 2013 | 2012 | |
|---|---|---|
| NZ$'000 | NZ$'000 | |
| Financial assets with currency exposure | 198,525 | 184,249 |
| Hedged currency exposure at end of the year | (180,073) | (167,615) |
| Unhedged Currency Exposure at the End of the Year | 18,452 | 16,634 |
Unhedged currency exposure:
| 2013 | 2012 | |
|---|---|---|
| NZ$'000 | NZ$'000 | |
| USA and Canada | 7,952 | 6,849 |
| United Kingdom and Europe | 3,490 | 3,250 |
| Australia | 5,842 | 5,490 |
| Japan | 1,168 | 1,045 |
| Unhedged Currency Exposure at the End of the Year | 18,452 | 16,634 |
15.2.3 Price Risk
Price 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 assets or factors affecting all financial assets in the market. The Trust is exposed to price risk relating to investments held by the Trust and classified as financial assets at fair value through profit or loss, comprising Australasian equities, private equity, global equities, direct property and infrastructure investments.
In determining the volatility factor for price risk the Trust has examined the average market return over the past 10 years for each of the investment classifications. Based on this, Trust Waikato has adopted the following volatility factors for price risk for the Trust investments: Australasian equities 19% (2012: 18%), private equity 25% (2012: N/A), global equities 22% (2012: 23%), direct property 11% (2012: 12%) and infrastructure investments 10% (2012: 10%).
The following table summarises the sensitivity of the Trust financial assets and liabilities to interest rate risk, foreign exchange risk and other price risk.
Full NZ IFRS Financial Statements for the year ended 31 March 2013
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NZ Gazette 2013, No 109
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Financial Statements of The Waikato Community Trust Incorporated
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🏢 State Enterprises & InsuranceFinancial statements, Community Trusts, Waikato, Currency Risk, Price Risk, Investments, Financial Assets, Fair Value