✨ Financial Statements Notes
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013
Portfolio Characteristics
The Group is not directly involved with the analysis, sale or purchase of individual asset securities. Investments are made into either pooled funds or segregated accounts with Fund Managers. The performance of each asset class is measured against an appropriate internationally accepted standard benchmark or index for each asset class.
The Investment Portfolio is allocated across four buckets, each representing various asset classes. Each bucket performs a specific role in the portfolio. In combination they provide diversification and an appropriate level of risk and return at the portfolio level.
Growth:
The Growth bucket forms the engine room of the portfolio and consists of listed public equities in developed and emerging markets as well as private equity investments.
Diversified:
The Diversified bucket provides growth and volatility reduction and consists of long/short hedge funds and absolute return funds.
Inflation Proofing:
The Inflation Proofing bucket provides an inflation hedge, diversification and growth through a combination of real assets, both listed and unlisted such as commodities, property, natural resources and inflation-linked bonds.
Deflation Proofing:
The Deflation Proofing bucket provides a reduction in volatility and protection against any prolonged contraction. The bucket consists of fixed income and cash investments.
Credit Risk
Credit Risk represents the risk that a counterparty to a financial asset fails to discharge an obligation which will cause the Group to incur a financial loss.
The Group's credit risk arises from any default by a counterparty. The current exposure at balance date is the fair value of these assets as disclosed in the Statements of Financial Position.
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 Group manages credit concentration risks through:
- a diversified and non-correlated basket of investments across traditional and alternative classes
- through the use of a multi-fund manager approach to investments in its portfolio
- and by ensuring compliance with the individual mandate requirements of each investment.
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NZ Gazette 2013, No 114
✨ LLM interpretation of page content
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ASB Community Trust Financial Statements Notes
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💰 Finance & RevenuePortfolio Characteristics, Investment Portfolio, Growth Bucket, Diversified Bucket, Inflation Proofing, Deflation Proofing, Credit Risk, Financial Instruments, Counterparty Risk, Risk Management