✨ Financial Performance Report
2020 NEW ZEALAND GAZETTE, No. 76 14 JUNE 2013
EASTERN AND CENTRAL COMMUNITY TRUST INC
The following table shows the actual performance, the benchmark performance and value added for all asset classes held by the Trust for the year ended 31st March 2012:
| Asset | Actual Return (%) | Benchmark Return (%) | Value Added (%) |
|---|---|---|---|
| NZ & Aus Equities | 2.9 | 1.5 | -1.4 |
| NZ Property | 15.2 | 15.6 | -0.4 |
| NZ Bonds | 7.1 | 6.8 | +0.3 |
| Offshore Equities | -8.2 | -2.4 | -5.8 |
| Aus Property | -6.8 | -11.1 | +4.3 |
| Offshore Bonds | 7.0 | 9.6 | -2.6 |
| Cash | 4.0 | 2.5 | +1.5 |
| TOTAL | -0.4 | -1.6 | +1.2 |
Fair Value and Impairment
As all of the financial instruments are revalued at year end to published prices there is no subjectivity as to whether the assets are impaired. The fair value equals the carrying value for all financial instruments.
Credit Risk
Credit risk represents the risk that a counterparty to a financial asset fails to discharge an obligation which will cause the Trust to incur a financial loss.
With regard to the credit risk arising for financial assets, the Trust’s credit risk arises from any default by a counterparty. There is no security held over these assets.
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 Trust manages credit concentration risks through;
- a diversified and non-correlated basket of investments
- ensuring compliance with the individual mandate requirements of each investment.
The Trust Manager, Trust’s investment advisor and the Trust’s Board review the portfolios for compliance against each investment mandate on a regular basis. The Fund Managers ensure that the funds they manage comply with their mandates as defined in the SIPO.
As at 31st March 2013 the maximum exposure to credit risk for New Zealand corporate bonds is detailed in the table below. The credit quality of the Trust’s NZ Bond portfolio is managed by the Trust using Standard and Poor’s rating categories.
| AAA to AA- | A+ to A- | BBB+ to BB- | Unrated | 2013 ($) | 2012 ($) | |
|---|---|---|---|---|---|---|
| Corporate Bonds | 0% | 29.3% | 60.2% | 10.5% | 33,794,075 | 37,660,368 |
| Cash | 100% | 10,613,524 | 3,292,497 | |||
| Total | 44,407,599 | 40,952,865 |
Liquidity Risk
Liquidity risk is the risk that the Trust will encounter difficulties in meeting the obligations associated with its financial liabilities. This risk is managed through the Trust’s investment in a diversified portfolio of financial assets.
The Trust’s investment portfolio during the year under review consisted of only 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, as well as the timing of the commitments below.
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NZ Gazette 2013, No 76
✨ LLM interpretation of page content
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Eastern and Central Community Trust Financial Statement
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💰 Finance & Revenue24 May 2013
Financial Statements, Income, Expenses, Donations, Trust, Accounting Policies, NZ IFRS 13, Fair Value Measurement, Financial Reporting Framework, Employee Benefits, GST, Income Tax, Leases, Cash Flows, Te Kete Putea Limited Partnership, DMS Database, Hosting Agreement, Administrative Expenses, Office Administration, Advertising, Promotion, Audit Fees, Depreciation, Rent, Services, Professional Expenses, Fund Managers' Fees, Donation Expenses