✨ Financial Statements and Analysis
4 AUGUST 2014
NEW ZEALAND GAZETTE, No. 86
2427
EASTERN AND CENTRAL COMMUNITY TRUST INC
The following table details the three-month forward foreign currency contracts outstanding as at 31st March 2013:
| Currencies | Buy Amount NZD | Deal Rate 5 Feb & 1 Mar 2013 | Valuation Rate 31 Mar 2013 | Gain/(Loss) NZD |
|---|---|---|---|---|
| Australian Dollars | 25,685,000 | 0.8093 | 0.8022 | (226,496) |
| British Pounds | 2,010,000 | 0.5324 | 0.5509 | 67,490 |
| Japanese Yen | 2,330,000 | 77.338 | 78.452 | 32,996 |
| US Dollars | 16,020,000 | 0.8389 | 0.8337 | (99,350) |
| TOTAL | 46,045,000 | (225,359) |
In 2013 the investments in Australian dollars included Australian Listed Property Index Trust, the Off Shore Bond Securities Index Fund and Australian shares held within the NZ & Australia Equity portfolio. They are reported in AUD by the fund managers. The remaining offshore equity investments were:
- Managed by State Street Global Advisors (Boston, USA).
- Invested in 27 individual country common trust funds.
- Reported by the fund manager in the fund’s base currency of AUD.
Sensitivity Analysis for Currency:
A 10 per cent movement of the NZD against the following currencies at 31 March would have increased (decreased) profit or loss by the amounts shown below. The analysis includes the mitigating effects of hedging policies. This analysis assumes that all other variables, in particular interest rates, remain constant. The comparisons for 2013 have been modified to account for the effects of hedging policy.
Effect in NZD:
| Effect of Movements in NZD | Profit or (Loss) 31 March 2014 $ | Profit or (Loss) 31 March 2013 $ |
|---|---|---|
| 10% fall in NZD/AUD | 634,693 | 363,908 |
| 10% rise in NZD/AUD | (576,993) | (297,746) |
| 10% fall in NZD/USD | 1,001,842 | 3,370,480 |
| 10% rise in NZD/USD | (910,766) | (2,757,665) |
| 10% fall in UK Pound | 534,069 | 561,398 |
| 10% rise in UK Pounds | (485,518) | (459,326) |
| 10% fall in Euro | 815,286 | 454,449 |
| 10% rise in Euro | (356,356) | (371,822) |
2. Interest Rate Rise
The Trust’s investments in fixed rate securities are subject to interest rate risk. The Trust’s SIPO requires a fixed rate security to have a minimum of a BBB- rating or equivalent grade. Trustee approval is required for ratings lower than BBB-. The maximum exposure to each fixed security is controlled by the credit rating so that the higher the credit rating, the higher the allowable exposure. Short term deposits are invested for periods up to 365 days taking into account current interest rates.
The Trust’s cheque and call accounts are interest bearing. Any movement in interest rates on these accounts is minimal and not considered to be material.
At the reporting date the interest rate profile of the Trust’s interest bearing financial instruments was:
| Carrying Amount 2014 $ | Carrying Amount 2013 $ | |
|---|---|---|
| Fixed Rate Instruments | 41,159,303 | 47,479,365 |
| Variable Rate Instruments | 25,863,862 | 22,580,178 |
| Total | 67,023,165 | 70,059,543 |
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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
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Investment Portfolio, Performance Measures, Credit Risk, Liquidity Risk, Market Risk, Currency Risk, Hedging, Foreign Exchange Contracts