2428 NEW ZEALAND GAZETTE, No. 86 4 AUGUST 2014

EASTERN AND CENTRAL COMMUNITY TRUST INC

Sensitivity Analysis for Fixed Rate Instruments:

A change of 100 basis points (1%) in interest rates for the entire period reported would have increased or (decreased) profit or loss by the amounts shown. The analysis is performed on the same basis for 2013.

| Fixed Rate Instruments | Cash Flow Sensitivity
| | 31 March 2014 | Cash Flow Sensitivity
| | $ | 31 March 2013 $
|------------------------------|-----------------------|-------------------------
| 100 basis points increase | 443,193 | 489,176 |
| 100 basis points decrease | (443,193) | (489,176) |

Sensitivity Analysis for Variable Rate Instruments:

A change of 100 basis points (1%) in interest rates for the entire period reported would have increased (decreased) profit or loss by the amounts shown below. The analysis is performed on the same basis for 2013.

| Variable Rate Instruments | Cash Flow Sensitivity
| | 31 March 2014 | Cash Flow Sensitivity
| | $ | 31 March 2013 $
|------------------------------|-----------------------|-------------------------
| 100 basis points increase | 242,225 | 169,087 |
| 100 basis points decrease | (242,225) | (169,087) |

3. Pricing Risk

Pricing risk is the risk that the value of the instrument will fluctuate as a result of changes in market price (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuers or all factors affecting all instruments traded in the market. As the majority of the funds’ financial instruments are carried at fair value with fair value changes recognised in the statement of comprehensive income, all changes in market conditions will directly affect investment income.

Price risk is managed by the Trust by constructing a diversified portfolio of instruments traded on various markets. The SIPO sets down the guidelines for this diversification.

Sensitivity Analysis for Pricing Risk:

The Trust’s financial assets are priced at fair value. The effect on the Trust’s statement of comprehensive income and balance sheet as at 31st March 2014, due to a possible change in market factors is represented in the following table:

| Financial Asset | Sensitivity Range |
| | (-1 to +1 Standard Deviations) | Sensitivity Impact $
|-----------------------|-------------------------------|----------------------
| Listed Shares | -9.3% to 25.2% | -2,401 to 6,780 |
| NZ Bonds | 1.0% to 9.5% | 343 to 3,208 |
| Offshore Bonds | 1.9% to 9.6% | 226 to 1,163 |
| Cash | 2.7% to 5.3% | 579 to 1,110 |
| Private Equity | | |
| Total Portfolio | -4.0% to 17.2% | -1,853 to 6,859 |

There is a 68% probability that the return in any one year will be within the range -4.0% to 17.2%.

The effect on the Trust’s statement of comprehensive income and balance sheet as at 31st March 2013, due to a possible change in market factors is represented in the following table:

| Financial Asset | Sensitivity Range |
| | (-1 to +1 Standard Deviations) | Sensitivity Impact $
|-----------------------|-------------------------------|----------------------
| Listed Shares | -9.8% to 25.4% | -2,357 to 6,054 |
| NZ Bonds | 1.1% to 9.9% | 480 to 4,404 |
| Offshore Bonds | 1.7% to 10.3% | 237 to 1,396 |
| Cash | 2.8% to 5.2% | 332 to 626 |
| Private Equity | | |
| Total Portfolio | -4.4% to 17.4% | -1,385 to 5,492 |