✨ Financial Statements
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
The investment objectives set out in the SIPO can be summarised as:
- maintaining the real value of capital of the Trust in perpetuity.
- ensuring a stable level of spending over time.
- maintaining equity between present and future generations in perpetuity.
As a responsible member of the world community, the Group aims to demonstrate leadership by advancing universal principles and responsible corporate citizenship to make the global economy more sustainable and inclusive. The Group is a signatory to the United Nations Principles for Responsible Investment.
The Investment Portfolio
The Group manages its Investment Portfolio in terms of its SIPO. The SIPO is monitored on a regular basis by the Board of Trustees and, as required, amended to reflect international best investment practice. The Portfolio’s Strategic Asset Allocation is reviewed at three yearly intervals. The Strategic Asset Allocation was reviewed during the 2013/14 financial year. The Trust has engaged Cambridge Associates Limited as its Investment Adviser. The pricing of financial assets is undertaken by the Group’s Custodian.
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.
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NZ Gazette 2014, No 105
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ASB Community Trust Financial Statements
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💰 Finance & RevenueFinancial Statements, Community Trusts, Investment Portfolio, Strategic Asset Allocation, Investment Adviser, Custodian