✨ Investment Portfolio Report
19 AUGUST 2014 NEW ZEALAND GAZETTE, No. 95 2677
• to maintain the value of the investment fund’s capital base in real terms and to grow such capital value at a level equal to the population base growth of the region. Real in this context relates to the changes in the Consumer Price Index (CPT).
The Investment Portfolio
The Foundation 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 last reviewed in 2013. Michael Chamberlain and Associates has assisted both management and Trustees with investment advice and portfolio monitoring.
Portfolio Characteristics
The Foundation is not directly involved with the analysis, sale or purchase of individual asset securities other than bonds and term deposits. 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 or index for each asset class.
Global Equities:
This portfolio is measured against the MSCI World Indices, and is 50% hedged back to New Zealand Dollars by State Street Global Advisors.
New Zealand Bonds:
The New Zealand Bond Portfolio is managed in-house. The Investment Guidelines provide strict limits on the underlying investment categories, along with credit and duration restrictions. The portfolio is measured against the NZX Government Stock Index.
Cash:
The Cash Portfolio is managed in-house. The investment guidelines places limits on the underlying investment categories, along with credit and duration restrictions. The portfolio is measured against the NZX 90 day bank bill index.
The SIPO sets out the following risks and mitigations:
Interest rate risk, reinvestment risk, default risk, currency risk, inflation risk, market volatility risk, market downturn risk, manager risk and timing risk. Comprehensive strategies are in place to mitigate each of these risks.
The credit quality of Foundation’s New Zealand Bond portfolio is managed by the Foundation using Standard & Poor’s rating categories as follows:
Group
| AAA to A | A+ to A- | BBB | NR | 2014 | 2013 | |
|---|---|---|---|---|---|---|
| NZ Corporate | - | - | 48.7 | 51.3 | 2,038,730 | 2,297,325 |
| Bonds | ||||||
| Term Deposits | 100% | - | - | - | 11,270,000 | 7,620,000 |
Parent
| AAA to A | A+ to A- | BBB | NR | 2014 | 2013 | |
|---|---|---|---|---|---|---|
| NZ Corporate | - | - | 48.7 | 51.3 | 2,038,730 | 2,297,325 |
| Bonds | ||||||
| Term Deposits | 100% | - | - | - | 10,900,000 | 7,350,000 |
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NZ Gazette 2014, No 95
✨ LLM interpretation of page content
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Investment Portfolio Management and Characteristics
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💰 Finance & RevenueInvestment Portfolio, Strategic Asset Allocation, Risk Management, Bonds, Term Deposits, Global Equities, New Zealand Bonds, Cash Portfolio
- Michael Chamberlain, Assisted with investment advice and portfolio monitoring