✨ Financial Statements
4 AUGUST 2014 NEW ZEALAND GAZETTE, No. 86 2425
EASTERN AND CENTRAL COMMUNITY TRUST INC
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.
As at 31st March 2014 the maximum exposure to credit risk for New Zealand corporate bonds is detailed in the table below. The credit quality is classified using Standard and Poor’s rating categories.
| AAA to AA- | A+ to A- | BBB+ to BB+ | Unrated | 2014 $ | 2013 $ | |
|---|---|---|---|---|---|---|
| NZ Bonds | 0% | 22.2% | 67.9% | 9.9% | 33,825,504 | 33,794,075 |
| Offshore Bonds | 21.0% | 31.0% | 45.0% | 3.0% | 12,077,149 | 13,685,289 |
| Cash with Manager | 100% | 5,975,728 | 10,613,524 | |||
| Total | 51,878,381 | 58,092,888 |
g) 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 providing regular income cashflows.
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.
At balance date all trade and other payables were current, and are normally settled on the 20th of the month following invoice date.
Committed but unpaid donations are held as current liabilities pending the satisfaction of conditions under which the donations were made. At balance date committed but unpaid donations totalled $1,658,050 (2013: $1,789,950).
These committed and unpaid donations at 31st March 2014 had the following profile:
| Financial Year Approved | Number of Grants Outstanding | Value $ |
|---|---|---|
| 2013 | 11 | 278,550 |
| 2014 | 87 | 1,379,500 |
| Total | 98 | 1,658,050 |
Committed but unpaid donations at 31st March 2013 had the following profile:
| Financial Year Approved | Number of Grants Outstanding | Value $ |
|---|---|---|
| 2012 | 10 | 343,500 |
| 2013 | 81 | 1,446,450 |
| Total | 113 | 1,789,950 |
h) Market Risk
Market risk embodies the potential for both loss and gains and includes currency risk, interest risk and price risk.
The Trust’s investment strategy and the management of the market risk are detailed in the SIPO. The Trust’s investments are diversified across a range of asset classes, entities, geographies, currencies and maturities. Within each asset class there are defined policies and mandates to ensure diversification, to minimise
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NZ Gazette 2014, No 86
✨ LLM interpretation of page content
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Financial Statements of Eastern and Central Community Trust Incorporated
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💰 Finance & RevenueFinancial Statements, Investment Portfolio, Performance Measures, Credit Risk, Liquidity Risk, Market Risk