✨ Financial Statements
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2014
11. COMMITMENTS: INVESTMENTS
The Trust has made commitments to invest in certain managed funds, which will call upon the committed funds as the fund managers identify suitable investment vehicles. These investments will be funded by realising other investments currently held by the Trust.
| 2014 | ||||
|---|---|---|---|---|
| Commitment | Contribution to date | Commitment Balance | Contribution within 1 year | |
| NZ$'000 | NZ$'000 | NZ$'000 | NZ$'000 | |
| HRL Morrison & Co PIP Ltd | 8,000 | 3,009 | 4,991 | - |
| Pencarrow Private Equity Ltd | 15,000 | 3,150 | 11,850 | 1,800 |
| Total | 23,000 | 6,159 | 16,841 | 1,800 |
| 2013 | ||||
|---|---|---|---|---|
| Commitment | Contribution to date | Commitment Balance | Contribution within 1 year | |
| NZ$'000 | NZ$'000 | NZ$'000 | NZ$'000 | |
| HRL Morrison & Co PIP Ltd | 8,000 | 2,175 | 5,825 | 450 |
| Pencarrow Private Equity Ltd | 15,000 | 750 | 14,250 | - |
| Total | 23,000 | 2,925 | 20,075 | 450 |
12. RISK MANAGEMENT OF FINANCIAL INSTRUMENTS
The Trust objective when managing Trust capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns for the community. The Trust Board regularly reviews the Trust funds and the risks associated with the Trust funds.
12.1 Financial Risk Management
The Trust activities expose it to a variety of financial risks which are managed through an ongoing process of identification, measurement and monitoring. The financial risks include market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and equity price risk), credit risk and liquidity risk.
The Trust has policies to manage the risks associated with financial instruments. The Trust is risk averse and seeks to minimise exposure from its treasury activities. The Trust has established investment policies. These policies do not allow the Trust to enter into any transactions that are speculative in nature.
The Trust uses the services of an investment advisor to pursue an investment policy considered appropriate for the Trust. The Trust selects fund managers according to their style and specialist skills.
Full NZ IFRS Financial Statements for the year ended 31 March 2014
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NZ Gazette 2014, No 101
✨ LLM interpretation of page content
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Notes to the Financial Statements of The Waikato Community Trust Incorporated
(continued from previous page)
💰 Finance & Revenue24 July 2014
Financial Statements, Investments, Risk Management, Commitments, Equity