✨ Financial Statements Notes
3102 NEW ZEALAND GAZETTE, No. 114 26 AUGUST 2013
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013
The Trust’s Custodian reviews the portfolio for compliance against each investment mandate on a regular basis and reports findings to the Group’s Management and Board of Trustees. Fund of Fund Managers ensure that underlying product fund managers comply with Fund mandates.
The credit quality of the Group’s Bond portfolio is managed by the Group using Standard & Poor’s rating categories.
Credit Risk Ratings of Investments
Group and Trust
31 March 2013
| AAA to AA- | A+ to A- | BBB+ to B | CCC, NR Other | $'000 | |
|---|---|---|---|---|---|
| New Zealand Bonds | 92.5% | 5.4% | 2.2% | 0.0% | 137,761 |
| Global Bonds | 67.6% | 14.1% | 14.3% | 4.0% | 93,664 |
| Cash | 71.8% | 27.6% | 0.6% | 0.0% | 65,335 |
Group and Trust
31 March 2012
| AAA to AA- | A+ to A- | BBB+ to B | CCC, NR Other | $'000 | |
|---|---|---|---|---|---|
| New Zealand Bonds | 95.7% | 4.3% | 0.0% | 0.0% | 111,479 |
| Global Bonds | 57.8% | 13.1% | 23.2% | 5.9% | 123,129 |
| Cash | 81.0% | 16.3% | 2.4% | 0.3% | 77,970 |
Liquidity Risk
Liquidity Risk is the risk that the Group will encounter difficulties in meeting the obligations associated with its financial liabilities. This risk is managed through the Group’s investment in a diversified portfolio of financial assets.
The Group’s Investment Portfolio mainly consisted of listed securities which under normal market conditions are readily convertible to cash. In addition the Trust maintains sufficient cash and cash equivalents to meet normal operating requirements. The Trust has also established a credit line with ASB Bank Limited.
The Group’s financial liabilities comprise of Sundry Accounts Payable, and Outstanding Grants Payable (and Subsidiary Company Current Account for the Trust). At balance date, all Accounts Payable were current, and are normally settled on the 20th of the month following invoice date. Outstanding Grants Payable are settled as the terms and conditions of payment for each grant are satisfied. The inter-group Current Account is between the Trust and its subsidiary company which transact on a regular basis.
Market Risk
Market Risk is the risk that the fair value of future cash flows from financial assets and liabilities will fluctuate due to changes in market variables such as interest rates, foreign exchange rates and market prices. Market risk is managed and monitored using sensitivity analysis and
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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, Credit Risk Ratings, Liquidity Risk, Market Risk