✨ Financial Statements
2794 NEW ZEALAND GAZETTE, No. 101 27 AUGUST 2014
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2014
At balance date the Trust exposure to currency risk was as follows:
| 2014 | 2013 | |
|---|---|---|
| NZ$'000 | NZ$'000 | |
| Financial assets with currency exposure | 226,894 | 198,525 |
| Hedged currency exposure at end of the year | (192,431) | (180,073) |
| Unhedged Currency Exposure at the End of the Year | 34,463 | 18,452 |
Unhedged currency exposure:
| 2014 | 2013 | |
|---|---|---|
| USA and Canada | 9,274 | 7,952 |
| United Kingdom and Europe | 4,328 | 3,490 |
| Australia | 19,624 | 5,842 |
| Japan | 1,237 | 1,168 |
| Unhedged Currency Exposure at the End of the Year | 34,463 | 18,452 |
12.2.3 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, global equities, unlisted property, infrastructure, private equity and global credit 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 20% (2013: 19%), global equities 20% (2013: 22%), unlisted property 11% (2013: 11%), infrastructure 9% (2013: 10%), private equity 25% (2013: 25%) and global credit 13% (2013: N/A).
The following table summarises the sensitivity of the Trust financial assets and liabilities to interest rate risk, foreign exchange risk and other price risk.
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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, Market Risk, Interest Rate Risk, Currency Risk